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Analysis: New labour codes bring on board gig workers with 90-day employment

New Labour Codes and Their Implications for Gig Workers in India

The Significance of New Labour Codes for Gig Workers in India

The Ministry of Labour and Employment recently published draft rules for four labour codes, marking a significant step towards including gig workers in the formal employment sector. These codes will offer benefits such as minimum wage, health, occupational safety, and social security coverage.

Eligibility Criteria for Social Security Benefits

Under the draft rules, gig workers must be associated with an aggregator for at least 90 days in a financial year to qualify for social security benefits. If a worker engages with more than one aggregator, the minimum requirement is 120 days.

Minimum Wage Calculation

The draft rules provide guidelines for calculating minimum wage. If a day's wage rate is fixed, it will be divided by eight for an hourly rate and multiplied by twenty-six for a monthly rate. The Central government will consider factors such as geographical area, experience, and skill level while fixing minimum wages.

Impact on Gig Workers in North East India and Beyond

The new labour codes have far-reaching implications for gig workers across India, including those in North East India. By providing social security coverage, the codes aim to ensure financial security and job stability for this growing workforce. This could lead to increased confidence among gig workers, encouraging more individuals to join the platform economy.

Reflections and Future Outlook

The draft rules for the four labour codes are a positive step towards recognizing and protecting the rights of gig workers in India. As the government invites feedback from stakeholders, it is crucial for the tech industry, labour unions, and workers to engage in a constructive dialogue to refine the rules and ensure they meet the needs of all parties.