Definition
Gig Worker Social Security
Gig worker social security refers to emerging frameworks under India's labour codes to extend benefits like insurance and pension to platform and gig workers.
Gig and platform workers — like delivery riders and cab drivers — traditionally lacked the EPF, gratuity and insurance that formal employees get. India's Code on Social Security envisions extending social-security schemes to them, potentially funded partly by aggregator platforms.
Proposed measures include registration of gig workers, contributions toward life and disability cover, health and pension, and a welfare fund. Implementation has been phased and is still evolving.
For gig workers, this aims to provide a safety net absent in independent work, though coverage and contribution mechanics depend on how the rules are rolled out by the centre and states.
Related terms
- EPF (Employer & Employee Split)The Employees' Provident Fund is a retirement savings scheme where both you and your employer contribute a percentage of basic pay each month, building a corpus that earns interest.
- Professional TaxProfessional tax is a small tax levied by some state governments on salaried employees and professionals, deducted from salary and capped at a low annual maximum.
- Salary vs Consultant TaxationA salaried employee and a consultant doing similar work are taxed differently: salary income has TDS and limited deductions, while consultancy income allows expense deduction or presumptive taxation.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.