Editorial

Sustainability challenges of Assam’s gig economy

The rapid expansion of the gig economy in Assam is gradually transforming the employment landscape in the state, as platform companies expand their business to new urban markets beyond Guwahati.

Sentinel Digital Desk

The rapid expansion of the gig economy in Assam is gradually transforming the employment landscape in the state, as platform companies expand their business to new urban markets beyond Guwahati. The opportunities of freelance work have significantly reduced the stress of educated migrant youth from rural Assam to Guwahati and various towns. While low entry barriers that bypass rigid corporate interviews allow them to pick up the work of their choice, ensuring the promised social security to registered gig workers remains crucial for the long-term sustainability of the gig economy in the state. The flexibility of choosing when to log on or off from the platform’s app, which also enables them to access other platform apps or attend educational programmes or skill training, offers greater time management flexibility compared to the fixed schedules of traditional company employees. However, the principle of “no work, no pay” results in gig workers losing income because they do not receive paid leave for illness or household responsibilities, which prevents them from completing tasks assigned through an algorithmic decision-making system. When other gig workers are available in the pool, work is assigned only to those who are active, which also affects the internal performance reports that feed into the algorithmic systems of the platform companies; these reports are crucial for determining work allocation and income volume for each individual worker. There is a long-term risk of gig workers withdrawing and either moving to another city with higher employment opportunities or returning to their villages when new economic opportunities are created in agriculture or allied sectors due to government initiatives or private investment. The safety shield provided by various social security schemes and benefits for gig workers under the Code on Social Security, 2020, addresses their concerns about the necessary funds for additional costs related to health, education, and other household needs, while also increasing anxiety about the availability of sufficient gig workers to meet rising consumer demand. Registration of gig workers to the e-Shram portal allows them to avail benefits of 15 different government schemes integrated to the portal, including Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), Pradhan Mantri Awas Yojana – Gramin (PMAY-G), Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), Pradhan Mantri Awas Yojana – Urban (PMAY-U), Pradhan Mantri Matsya Sampada Yojana, and so on. Low registration of gig workers across the country on the e-Shram portal reflects a lack of awareness of the social security protections ensured by the government through legal enactment. Of the total 31.78 crore informal workers registered on the portal, less than 11 lakh are gig workers. Industry estimates put the total number of gig workers in the country at 1.2 crore, which implies that less than ten per cent of gig workers have been registered on the e-Shram portal and there is a low level of awareness among 90% of gig workers about the benefits of registration. The figures highlight the urgent need to go beyond the definitions of gig and platform workers and recognise their significant role in the rapidly growing Indian gig economy, as well as the transformation in the employment landscape resulting from the creation of freelance work opportunities. Information provided by the central government to Parliament highlights that the Social Security (Central) Rules, 2026, notified in May, constitute an important step towards extending formal social protection to gig and platform workers. The Rules put the Code into action by requiring gig and platform workers to register on a central government website, asking companies to share information about these workers, setting criteria for social security benefits, and ensuring that businesses are responsible for providing support to them. The Ministry of Labour & Employment has said that it has held many discussions with aggregators, experts, platform workers’ groups, state governments/union territories, and other organisations to develop a social security system for gig and platform workers, as required by the Code. However, if a gig worker is unaware of the social security codes and the process to access them, even a comprehensive welfare scheme will not effectively tackle the sustainability challenges faced in the gig economy in smaller states like Assam, where it has begun to take off. Unless the registration of gig workers picks up in the e-Shram portal, the statistics of awareness camps or lists of participants in stakeholder consultations should be viewed with concern. The rapid spread of the gig economy is driving up consumer demand for instant and last-mile delivery of goods and services. For Assam’s gig economy to expand on durable foundations, strengthening social security protection for gig workers has become indispensable.