Why in the News?

The Union Labour Ministry has set up an expert committee to recommend a social security framework for gig workers. This is part of a broader effort to register them on a national portal and extend benefits like healthcare, insurance, and retirement plans.

Gig Economy

About Gig Economy

• It is a free-market system which relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.
• It is also known as the sharing economy or access economy.
• Gig workers have flexibility and independence but little or no job security.
• In a gig economy, employers save money when they do not have to provide benefits such as health coverage and paid vacation time.
• According to a 2019 report by the India Staffing Federation, India is the fifth largest in flexi-staffing globally, after the US, China, Brazil and Japan.
• As per NITI Aayog’s “India’s Booming Gig and Platform Economy” the gig workforce is expected to expand to 2.35 crore (23.5 million) workers by 2029-30.

Benefits of Gig Economy

• For Employers
  • A wider range of applicants due to remote work options.
  • Ease in hiring and firing based on work and requirement.
  • Need not provide costly benefits like health insurance or paid vacation time to workers.
• For Employees
  • Greater flexibility for individuals to set their own schedule
  • Offers various side-hustle opportunities to those who work regular full-time jobs
  • Remote positions allow gig workers to live anywhere that has an internet connection.