Context

• The adoption of ILO Convention No. 193 on Decent Work in the Platform Economy marks a landmark development in global labour governance.
• It is the first binding international treaty dedicated to protecting gig workers and platform workers.
• Although the Convention received overwhelming support worldwide, India abstained, raising concerns about its commitment to safeguarding the rights of its rapidly growing gig workforce.

The Significance of ILO Convention No. 193

• The Convention establishes a global minimum standard for decent work in the platform economy, irrespective of whether workers are classified as employees or independent contractors.
• It guarantees minimum wages, timely payment, occupational safety, social security, and algorithmic transparency.
• It also mandates human oversight over automated decisions and requires governments to determine worker status based on the actual nature of work rather than contractual labels.
• These provisions aim to ensure fairness and accountability in the digital labour market.

India’s Expanding Gig Economy

• India has become one of the world's largest platform economies.
• According to NITI Aayog, the gig workforce is projected to grow from 7.7 million in 2020-21 to 2.35 crore by 2029-30, accounting for nearly 6.7% of the non-agricultural workforce.
• Gig workers are now essential to sectors such as food delivery, ride-hailing, logistics, e-commerce, and digital services, making them a crucial pillar of the urban economy.

Challenges Faced by Gig Workers

• Despite their growing importance, gig workers remain economically vulnerable.
• Many earn between ₹10,000–₹40,000 per month after working long hours while bearing fuel and maintenance expenses themselves.
• Only about 15% receive any form of social security, leaving most without health insurance, accident cover, pensions, paid leave, or income protection.
• Another major concern is algorithmic management, where digital platforms use automated systems to allocate work, determine incentives, monitor performance, and suspend accounts without transparency or an effective appeal mechanism.

India’s Existing Legal Framework

• The Code on Social Security, 2020, implemented with the Labour Codes in 2025, legally recognises gig workers and platform workers.
• It requires aggregators to contribute 1–2% of their annual turnover, subject to a ceiling of 5% of worker pay-outs, towards a social security fund, however, significant gaps remain.
• The law does not clearly specify benefits, eligibility, or implementation mechanisms, leaving most welfare provisions largely unimplemented. Consequently, legal recognition has yet to translate into meaningful protection.

Role of States

• Several States have taken proactive steps to protect gig workers.
• Rajasthan's Platform-Based Gig Workers Act, 2023, along with proposed welfare boards in Karnataka and Telangana, demonstrates that effective regulation of platform work is achievable.
• These initiatives provide useful models for a comprehensive national framework.

Reasons Behind India’s Abstention

• India generally ratifies international conventions only after ensuring complete alignment with domestic laws.
• The Concurrent List status of labour also necessitates coordination between the Centre and States.
• Additionally, concerns over increased compliance costs, reduced labour market flexibility, and the impact on digital innovation may have contributed to the government's cautious approach.

Implications of the Abstention

• India's abstention delays stronger legal protections for millions of gig workers and weakens accountability of digital platforms.
• Without internationally recognised standards, workers continue to face insecure employment, opaque algorithmic decisions, and inadequate welfare benefits.
• As a founding member of the ILO, India also risks creating a gap between its commitment to inclusive growth and the actual protection available to platform workers.

Way Forward

• India should operationalise the Social Security Code by defining concrete welfare schemes and ensuring their effective implementation.
• A comprehensive national social security fund should provide health insurance, accident cover, pensions, and maternity benefits.
• The government should also mandate algorithmic transparency, establish robust grievance redressal mechanisms, harmonise State initiatives with a national framework, and progressively align domestic laws with international labour standards to enable future ratification of ILO Convention No. 193.

Conclusion

• The platform economy has transformed India's labour market by creating new employment opportunities, but it has also exposed workers to significant insecurity.
• Protecting gig workers through adequate social security, transparent algorithmic management, and fair labour standards is essential for inclusive economic growth.
• A balanced regulatory framework that promotes both innovation and decent work will ensure that India's expanding digital economy remains equitable, sustainable, and globally competitive.