Long Hours, Low Pay and No Labour Laws- Youth Trapped In Gig Work

Chennai: While the gig economy is growing fast, the workers are not even recognised by the labour codes, except the Social Security Code. However, the Code has not yet been implemented and the health coverage announced under Ayushman Bharat also remains on paper. The algorithm-controlled nature of gig work forces many workers to toil for 12-14 hours a day for an average earnings of Rs 18,000 per month after operating costs. Apart from social security and labour law protection, the government should also create opportunities for skill upgradation and career progression for young workers, says Dharmendra Kumar, Founding Secretary of Jan Pahal, an organisation working for the rights of gig workers.

According to Kumar, the biggest issue is that gig workers are still not recognised as workers under three of India's four labour codes—the Industrial Relations Code, the Occupational Safety, Health and Working Conditions Code, and the Wage Code. As a result, they remain outside the legal framework governing wages, working conditions and industrial relations. The Social Security Code, 2020 is the only labour law that recognises gig workers, but even six years after its enactment, its implementation is yet to begin.

Although the rules under the Code have finally been notified, the government is still debating the kind of social security benefits that should be extended and the mechanism through which they should be delivered. Kumar believes the proposed Social Security Board for gig workers should be established at the earliest to design a sustainable framework for delivering welfare benefits.

The government had also announced that gig workers would be covered under the Ayushman Bharat health insurance scheme. However, Kumar says the benefit has not reached workers. While more than one million platform workers have registered on the e-Shram portal, the registration has not translated into any immediate welfare benefits. The government intends to use the e-Shram database to identify beneficiaries, but workers continue to wait for the promised health insurance and other social security measures.

Another growing concern is the role of algorithms in managing workers. From allocating orders and determining incentives to ratings and account deactivation, algorithms control almost every aspect of a gig worker's livelihood. Kumar argues that the system lacks transparency and fairness, with workers often penalised or removed from platforms without being given an opportunity to explain their side.

Low earnings remain another major challenge. Surveys conducted by Jan Pahal show that more than 70 per cent of gig workers work beyond eight hours a day, with many putting in 12 to 14 hours every day and working all seven days of the week. Even then, workers earn only around ₹25,000-30,000 a month before meeting expenses such as fuel, vehicle maintenance and parking charges. After accounting for these costs, many take home less than ₹18,000 a month, strengthening the demand for a minimum earnings guarantee that factors in operating expenses.

Kumar also cautions that India's young workforce is getting trapped in low-paying gig jobs with little opportunity to upgrade skills or build long-term careers. Instead of allowing the country's demographic dividend to remain confined to delivery and ride-hailing services, he says the government should invest in skill development, entrepreneurship and affordable business infrastructure so that gig workers can move into higher-value economic activities.

"The gig economy is here to stay. The challenge is to ensure that it delivers not only convenience to consumers but also dignity, security and sustainable careers for the millions of young Indians who power it," he said.