Social security to pension benefits: Rajasthan’s gig workers bill spurs hope for Telangana workers

A key feature of the bill is the creation of a dedicated welfare fund for gig workers

By Nikisha Uddagiri  Published on  28 July 2023 2:30 AM GMT
Social security to pension benefits: Rajasthan’s gig workers bill spurs hope for Telangana workers

Hyderabad: Rajasthan Assembly passed the first-of-its-kind bill in India aimed at extending social security benefits to gig workers.

Passed on July 25, the bill marks a significant step forward in improving the working conditions and welfare of gig workers in the state.

Under the bill, gig workers are defined as individuals who perform work or provide services on a contract basis, including tasks like transportation of goods or passengers, without any guarantee of continued work for a specific duration.

A key feature of the bill is the creation of a dedicated welfare fund for gig workers. This fund will be financed by a fee imposed on aggregators, and its purpose is to provide gig workers with essential social security benefits. These benefits include health insurance, accident insurance, maternity benefits, and pension benefits, ensuring that gig workers have the necessary support during times of need.

One crucial aspect of the bill is the establishment of a grievance redressal mechanism. This mechanism will enable gig workers to lodge complaints with the welfare board if they encounter any issues with their work or face challenges with the aggregators they work for. This provision aims to protect gig workers' rights and ensure fair treatment within the gig economy.

Shaik Salauddin, National General Secretary, of the Indian Federation of App-based Transport Workers (IFAT), expressed his optimism about the bill's impact on gig workers. “For every ride, an extra 1 rupee will go into a fund for drivers, which customers won't mind. The fund's amount will be distributed to drivers through different schemes based on their priorities, decided by the welfare board as the fund grows,” he said.

He said the bill also ensures transparency in the way ride-hailing platforms charge customers and pay drivers. “Currently, customers pay a flat rate for a ride, but drivers only receive a portion of that amount. The rest of the money goes to the platform, which takes a commission. This can make it difficult for drivers to know how much they are making per ride. In this, the government will also be a part of the board, along with representation from the companies, unions, and the ministries of labor, finance, IT, and transport. This will benefit all aggregator companies and gig and platform workers,” said Salauddin.

Here's how the bill was passed

“Rahul Gandhi's yatra played a major role in achieving this. He raised these issues continuously. Rajasthan was under the control of the Congress party at the time. He convinced them, and they agreed to pass the bill before the elections.”

“Even in Bangalore, before the elections, Rahul Gandhi met with drivers and discussed their problems. As promised, the bill has now been passed in the assembly. It provides drivers with an insurance of Rs 4 lakh.”

"I am working all over the country and achieving rights everywhere, but not in my city. While the central government is calling us to discuss the problems, the Telangana government is not even considering giving an appointment. However, we are urging the government to consider a similar bill. It could benefit gig and platform workers in Hyderabad with Rs 4.2 lakhs each,” says Shaik Salauddin, who is also a Founder President, of Telangana Gig and Platform Workers Union (TGPWU).

Here are some of the key features of the bill:

Registration of gig workers and aggregators: The bill requires all gig workers and aggregators to register with the Rajasthan Platform-Based Gig Workers Welfare Board. This will help the government track the number of gig workers in the state and ensure that they are not exploited by aggregators.

Welfare fund: The bill establishes a welfare fund for gig workers, which will be funded by a fee levied on aggregators. The fund will be used to provide several social security benefits to gig workers, such as health insurance, accident insurance, maternity benefits, and pension benefits.

Grievance redressal mechanism: The bill establishes a grievance redressal mechanism for gig workers. This means that gig workers will be able to file complaints with the board if they have any problems with their work or with the aggregators they work for.

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