Union Budget 2021 | Platform, gig workers to get social security benefit

Social security benefits will be extended to gig and platform workers in India -- a first across the globe -- while women will be allowed to work in all categories of the workplace as well as on night shifts with adequate protection.

This was announced by Finance Minister Nirmala Sitharaman during her Budget speech in the Lok Sabha on Monday in which she also proposed the launch of a portal to collect information on gig, building, and construction workers among others to formulate social security schemes for them. An allocation of Rs 150 crore has been made for the national database on unorganised workers.

Read: Budget 2021 | Key takeaways from the Budget speech

"For the first time globally, social security benefits will extend to gig and platform workers," she said.

Gig and platform workers are engaged by e-commerce firms and are deprived of social security benefits like Provident Fund, group insurance and pension at present as they are not paid salaries.

"To further extend our efforts towards the unorganised labour force and migrant workers particularly, I propose to launch a portal that will collect relevant information on gig, building and construction workers among others. This will help formulate health, housing, skill, insurance, credit and food schemes for migrant workers," she added.

However, the allocation for the Ministry of Labour and Employment for 2021-22 declined to Rs 13,306.5 crore from Rs 13,719.56 crore, which is the revised estimate for 2020-21. If one takes the initial allocation, it was an increase from Rs 12,065.49 crore.

Among the allocations for the ministry, a huge chunk of Rs 11,674.1 crore is earmarked for social security schemes for workers. This is an increase from the previous allocation of Rs 8,725.1 crore and revised estimates of Rs 11,670.1 crore.

For the Atma Nirbhar Bharat Rozgar Yojana, Rs 3,130 crore -- up from Rs 1,000 crore -- has been allocated but no money has been allocated for the creation of a national platform of unorganised workers and allotment of Aadhaar-seeded ID numbers as against the Rs 50 crore allocated in the previous Budget.

Only Rs 10 lakh has been allocated for the health insurance scheme for the unorganised sector as against the previous allocation of Rs 200 crore. The revised estimates showed only Rs one crore for the scheme in this fiscal.

Referring to the passage of four Labour Codes, she said the government would conclude a process that began 20 years ago, with the implementation of the codes.

"Minimum wages will apply to all categories of workers, and they will all be covered by the Employees State Insurance Corporation. Women will be allowed to work in all categories and also in the night shifts with adequate protection. At the same time, the compliance burden on employers will be reduced with a single registration and licensing, and online returns," she said.

Sitharaman also referred to the launch of the One Nation One Ration Card scheme through which beneficiaries could claim their rations anywhere in the country.

She said that migrant workers, in particular, would benefit from this scheme – those staying away from their families could partially claim their ration where they were stationed, while their family, in their native places, could claim the rest.

"I am happy to inform you that the One Nation One Ration Card plan is under implementation by 32 states and UTs, reaching about 69 crore beneficiaries – that’s a total of 86% of beneficiaries covered. The remaining four states and UTs will be integrated in the next few months," Sitharaman said.