The Rajasthan government passed a bill,a few days ago,related to the economic and social welfare of “gig” workers in the state legislative assembly .The discussion about such laws started to gain momentum nationwide, highlighting the importance of providing economic security for those working in the unorganized sectors.The social existence of a person working in the unorganized sector, which is a very large part of Indian society, is possible only when he gets the economic security of his basic needs. He depends on day-to-day employment for himself and his family, but his problem is that despite sacrificing his life, he does not get any kind of financial security from his employer or institution towards his future. Under this, neither he has the option of monthly financial savings through investment in the provident fund nor any kind of insurance facility in case of accidents. Apart from this, the inability of the family to get any kind of financial facility after the sudden death of a worker working in the unorganized sector is also a pain that a large section of society has been holding on to it for the last several years.During the lockdown due to the coronavirus pandemic, the sight of crowds on the streets for days highlighted this suffering, as gig workers were compelled to walk back to their villages due to the lack of economic and social security in the cities. Notably, Rajasthan is the only state in the country that has implemented provisions related to the economic and social welfare of gig workers through this bill. The Gehlot government had presented these provisions in the budget of February 2023, and it was unanimously passed last week.

It is also a fact that generally every other person in society might not know the meaning of the word “gig,” but these days, they are hearing it frequently in their surroundings. In reality, another word closely related to the term “gig” is “freelancer.” Since the economic reforms of the 1990s, there has been a significant increase in the popularity of technology and management degrees among Indian youth specially over the last two to three decades. In recent years, it has been observed that the youth do not want to tie their qualifications to a single institution for an extended period and prefer flexibility due to financial reasons and the distance from home to the cities. Consequently, they have started giving priority to jobs where they can connect with various organizations at the same time. During the coronavirus pandemic, when big companies established a “work from home” culture in Indian society, the trend of freelancing became quite  prevalent. On the other hand, it is also observed that companies themselves have given more priority to such employees because it reduced their financial costs. Currently, there are around 15 crore people working as freelancers in various companies in the country, primarily in IT, BPO, FMCG, pharmaceuticals, manufacturing, marketing, branding, online education, transportation, and accounting fields. According to various experts, in the next two to three years, there is a possibility of a growth of one and a half to two percent in the GDP through freelancing. They also predict that in the coming years, gig work will provide employment to nearly 30 to 35 crore people. However, at present, the number of such employees in big companies is around ten percent.

These days, the term “gig” is also representing those laborers in Indian society who are actively involved in various startups, playing a significant role in the development of modern India, and in reality, they are the backbone of these startups. In the current era of modernization, India’s new entrepreneurs are trying to take credit for the fact that the most skilled workforce in the world is found in India. In  big cities, when a customer  get their preferred food items delivered within ten minutes of placing an order, it proves that companies like Swiggy, Zomato, and others are investing significantly in research and development for their workers. Similarly, in big cities, when a taxi is available to a customer within five to ten minutes through mobile applications like Ola and Uber, it saves them from the hassles of public transportation and also eliminates the risk of getting lost on unfamiliar routes. In addition to this, in big cities, using a virtual card, customers can have their preferred vegetables delivered by a delivery boy without any inconvenience, making it prevalent for them to be available at their doorstep in the morning. Moreover, in big cities spanning 30 to 40 kilometers, courier services are also available in a single day. All these people working in these startups are also called “gig workers” who are in reality similar to the workers working in the unorganized sector in various economic and social facilities.

The Rajasthan government has passed a bill in the legislative assembly to ensure the economic and social welfare of gig workers associated with various startups, making it a significant step for all gig workers in the country. According to the Rajasthan government, approximately 3-4 lakh people are currently engaged in such employment in Rajasthan. This law guarantees various economic and social security measures for all gig workers. Under its main provisions, the Rajasthan government will register all these workers on a portal and provide them with a unique code for individual identification. Through this portal, all registered gig workers will have direct access to the various social and economic welfare benefits offered by the Rajasthan government. Startups will also have to invest a specific amount in the Employee Welfare Fund. Failure to do so can result in penalties, including an annual interest rate of 12 percent and fines ranging from ₹1 lakh to ₹5 lakh, as mentioned in the legal provisions. The maximum limit for this penalty is fifty lakhs rupees. The bill also proposes the establishment of a welfare board for gig workers.

The movie “Zwigato,” featuring comedian Kapil Sharma, sensitively portrays the struggles and realities faced by gig workers in startups. Several poignant scenes in the film depict gig workers delivering orders with multiple packages and inquiring about additional charges, only to be told that the charge is per package. It also highlights how gig workers consider themselves fortunate when they manage to reach home early one day. In this film, the children of a gig worker ask their father why he doesn’t take up another job? Many sensitive scenes like this portray the real-life struggles and financial situations of gig workers.The Rajasthan government, under Chief Minister Ashok Gehlot, has been in discussions for various social welfare schemes across the country, starting with an expansion of healthcare-related facilities. Now, with the passing of the law concerning the economic security of gig workers, it has further extended the scope of social welfare. In a democratic society, it is the government’s responsibility to ensure the economic and social well-being of marginalized sections of society. The passing of these provisions in Rajasthan raises the question of whether other states will follow suit and implement similar legal measures for the welfare of gig workers.

Dr. P.S. Vohra , Academician, Financial Thinker & Newspaper Columnist , Views are personal