Gig economy set to be formalised

Hyperlocal service platforms have revolutionised the job landscape in the transportation, food delivery, and home services industries by creating flexible employment.

- Sowmya Ramasubramanian

Online platforms such as Swiggy, Zomato, Amazon and Flipkart are likely to see increased interest for delivery-partner and warehouse-worker jobs as the Union Budget has proposed formalising the gig economy, industry executives told Mint.

Union finance minister Nirmala Sitharaman announced in her budget speech on Saturday that gig workers would be provided health insurance under the government's flagship Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). Currently, the National Health Authority (NHA) implements the world's largest health insurance scheme, which provides health cover of ₹5 lakh per family per year. Under the terms of AB-PMJAY, there is no waiting period and no restrictions on pre-existing health conditions.

Gig workers will also be issued identity cards and be eligible to register on the e-Shram portal, the national database of unorganised workers under the labour ministry.

"Officially recognising and formalising the gig economy is a step in the right direction. Including gig workers in the organised ecosystem will help them get employment benefits, and encourage more people to take advantage of the growing opportunities," said Balasubramanian Anantha Narayanan, senior vice president at TeamLease Services Ltd.