Rajasthan Becomes First State To Pass Law Providing Social Security To Gig Workers

Jahanvi Agarwal

The Rajasthan Platform-Based GIG Workers (Registration and Welfare) Bill, 2023, was introduced on Friday, i.e., July 21, 2023, in an attempt for Rajasthan to become the first state in India to offer social security to gig workers. If the aggregator neglects the bill’s terms, severe financial penalties are prescribed.

The law will provide gig workers with a standard, unique ID that will function across all platforms. The state will create “The Rajasthan Platform-Based Gig Workers Welfare Board” when all of the state’s aggregators have registered the state’s gig workers. A welfare fee deduction system that will be connected with the aggregator app is what the law aims to put up.

The law mandates a penalty of Rs. 5 lakhs for the first offence and Rs. 50 lakhs for any future offences if an aggregator violates the act’s requirements. The government plans to set up a monitoring system to ensure that the aggregator complies with the bill’s requirements and confirm that the welfare charge is frequently withheld for gig workers.

According to the bill, the aggregator would provide a portion of the welfare charge on a transactional basis or in accordance with instructions from the Rajasthani government.

‘Ability to engage in all decision-making processes’

These workers will be able to make use of both broad and targeted social security programmes because of their unique identification. Furthermore, they will have the tools necessary to be heard in the case of a complaint. In addition, by having a representative on the board, they will be able to participate in any decisions that are made that affect their well-being.

By 2030, there are expected to be 23.5 million gig workers in India, contributing significantly to the nation’s economic growth. Employers are required to provide gig workers with social security benefits under a distinct part of the Code of Social Security (2020) titled “gig workers,” but the Code is still awaiting the formulation of the regulations.