Economic Survey 2025-26 suggests minimum wage for gig workers

The Economic Survey for 2025-26 has proposed the introduction of minimum hourly or task-based wages for gig workers, aiming to promote formal employment within this rapidly growing sector. According to the survey, presented in Parliament on Thursday, implementing policy changes could help bridge the gap between traditional employment and gig work. This would limit the current incentives that discourage mandatory benefits, while also ensuring that gig workers receive fair compensation for their time, including waiting periods. The report emphasizes that the gig economy should be structured in a way that empowers workers, providing them with real choices rather than forcing them into gig roles due to low demand, mismatched skills, or lack of safety nets. The number of gig workers in India has surged by 55%, increasing from 7.7 million in FY21 to 12 million in FY25. Projections indicate that the growth of gig employment will surpass overall job creation, with non-agricultural gigs expected to make up 6.7% of the workforce by 2029-30. Major online platforms like Blinkit, Zepto, Swiggy, Urban Company, Rapido, BigBasket, Flipkart, and Amazon are responsible for a significant portion of this workforce. However, this concentration of power raises concerns about fees, algorithmic management, and worker protections. The survey suggests that regulatory measures should be introduced to enhance competition, ensure data accessibility, and promote transparency in algorithm usage. It also calls for a redefinition of the social contract to ensure that gig work is fairer and more beneficial to workers. Furthermore, the Economic Survey highlights the need for gig workers to have access to essential financial support mechanisms, including affordable emergency savings options, portable social security benefits, and educational programs on budgeting and financial literacy. Currently, many gig workers are categorized as 'freelancers', 'independent contractors', or 'platform partners', which complicates their ability to benefit from standard labor market protections. This classification often results in a lack of essential benefits like social security, paid leave, minimum working hours, and health coverage, leading to job insecurity and lower earnings. The report notes a global trend towards stricter regulations for gig economies. For instance, Spain's 2021 'ley rider' legally recognized food courier workers as employees, establishing regulations for algorithm use in the workplace. The European Union's Platform Workers' Directive, set for implementation in 2024, aims to rectify the misclassification of gig workers and enhance transparency and fairness in decision-making processes. Additionally, the International Labour Organization (ILO) has initiated discussions on creating international standards for decent work within the platform economy, focusing on fair wages, working conditions, and social protections. Cities like Seattle and New York have already implemented protective measures for app-based workers, including anti-retaliation protocols and minimum wage regulations.