Gig Economy & Gig Workers

Gig economy revolves around gig workers. Infact they are interdependent. When gig economy flourishes, it benefits gig workers. When gig workers grow, it cumulatively boosts gig economy.

Gig Economy

Gig economy is a part of service based economy where workers engage in flexible short term contracts, or freelance work.

Gig Workers

Gig workers work on contractual basis. They perform task specific work. Once the task is over they find and switch onto another task. They do not engage in the traditional 9 to 5 office job environment. Instead, they perform on demand work.

Some of the examples of Gig workers are: –

1. Delivery Person
2. Carpenters
3. Ola / Uber Drivers
4. Freelancers
5. Technicians
6. Etcetra

Status of Gig economy around the World and India

As per World Economic Forum, the global Gig economy was valued at $556.7 billion in 2024. And it is expected to triple to $1.85 trillion by 2032. Around 1.5 billion people around the globe are expected to be Gig workers by 2030.

As per Niti Ayog Report, around 2.35 crore (23.5 million) Indians are expected to be Gig workers by 2032. Given the rising share of Gig workers, it is necessary to understand the positives and negatives of being a Gig worker in India.

Positives and Negatives vary with the type of Gig work: –

Positives of being a Delivery Person / Driver: –

1. Flexible working time.
2. Work can be part time or full time.
3. Work may be available near the place of residence, hence no need to relocate for the purpose of job.

Negatives of being a Delivery Person / Driver: –

1. Long/uncertain work hours
2. Irregular income
3. No excuse for heat, traffic, rain
4. Public rating decides the reward
5. Lack of employer provided benefits like health insurance, paid leaves, retirement corpus etc.

Positives of being a Freelancer / Technician: –

1. Flexible working time
2. Work from home
3. High pay for high skill sets
4. Work as a side hustler

Negatives of being a Freelancer / Technician: –

1. No job security
2. Client may refuse to take the project or pay for the project
3. Lack of employer provided benefits like health insurance, paid leaves, retirement corpus etc.

Government Initiatives

As we have seen some of the negatives of being a gig worker in India, It has became necessary for the governments to take some initiatives to alleviate the disadvantages faced by the Gig workers. So some of the Indian states like Rajasthan and Telangana have come up with Gig workers protection laws. And Government of India came up with the “Codes On Social Security” which has provisions for the benefits of Gig workers.

Rajasthan Platform Based Gig Workers Act 2023

Below given diagram highlights the provisions of the Rajasthan Platform Based Gig workers act 2023.

Telangana Platform Based Gig Workers Act 2026

Below given diagram highlights the provisions of the Telangana Platform Based Gig workers act 2026. This law was passed in march 2026 by the Telangana government.

Codes On Social Security – Provision for Gig Workers

1. Legal Recognition of Gig & Platform workers
2. Social Security & Welfare Fund
3. Portability of benefits (Aadhar linked Unique ID)
4. Self registration on national portal (e-shram portal)
5. Grievance Redressal for timely support

These laws and codes somewhat empowers the Indian Gig workers, which is beneficial for overall positive growth of the Indian Gig economy.