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1. DAILY CURRENT AFFAIRS July17, 2024 ‘ Economics (Mains) Gig Economy in India a particular task or for a certain period of Heading time. Recently, Karnataka introduced a bill ●Gig Workers may include freelancing, called the Draft Karnataka Platform- temp agency work, self-employment, based Gig Workers (Social Security and subcontracted work. and Welfare) Bill, 2024. Classification of Gig Workers in India Who are Gig Workers? 1.Independent Contractor ●A Gig Worker is an employee whose Independent contractors are those gig relation with the employer is different workers who are not employees of a company from the conventional employer- but they work for a specific period on a employee arrangements. project with the understanding that the ●Standard workers have a long-term project will end and the job will end. employer-employee relationship in which the worker is paid by the hour or 2.Self-Employed Employee year, earning a wage or salary. ●However, gig work tends to be Self-employed workers are those Gig temporary or project-based work in workers who don't have an employer- which the workers are hired to complete employee relationship with any company

2. and are responsible for their work and Side gigs are working gigs workers who can expenses. be part of the gig economy for full-time and independent workers. These workers usually 3.Platform Worker do a complete job of typical 9-5 jobs and after that do their gig job. Platform workers are those gig workers who work on apps and platforms such as Uber, NITI Aayog’s Classification of Gig Workers Lyft, or Fiverr. These workers have general skills that allow them to work on several The NITI Report 2022 classifies gig workers as those platforms or in some cases specialized skills individuals who engage in work outside the and can only work on one platform. traditional employer-employee setup with two distinct subsets: 4.Freelancer 1.Platform Workers and Freelancers are those gig workers who work 2.Non-Platform Workers. directly with companies that require service. They are given a goal or project to complete Platform workers utilize online algorithmic and a contract detailing payment details and matching platforms like Amazon or Uber to connect the project timeline. They manage their with customers, while non-platform workers billing and tax themselves. encompass those in sectors such as construction, day jobs, and other technology-independent temporary 5.Temporary Worker work. Temporary Workers are those gig workers Analyzing the State of the Gig Economy who have a set end date for their employment in India and the World with a company. Some of the temporary workers work in holidays and leave the company after the holidays ends. Some temporary workers work on weekends. 6.Side Gig

3. increased from 0.54% in 2011-12 to 1.33% in 2019-20. ●NASSCOM Report: According to a report by NASSCOM in 2022, the Indian gig workforce is expected to expand to 23.5 Mn workers by FY30 from 7.7 Mn in FY21. ●Gig workers will form 4.1% of the total workforce in India by FY30, from 1.5% in FY21. ●India is currently the fifth-largest ●Approximately 22% of the jobs of these contributor to the gig economy labour Gig Workers are high-skilled, 47% are market. It has currently 15 million medium-skilled, and ~31% are low- qualified workers who are working in skilled. the gig economy. ●India currently provides 40% of the Significance of the Gig Economy world's freelance labour (freelance gig workers) which is accessible globally. Cheaper and Efficient Labour ●The United States, China, Brazil, and The gig economy produces cheaper, more Japan are the four top gig economies of efficient and flexible services that can offer the world. consumers a unique and fast alternative to ●The gig economy is on the rise globally regular, standardized business. and is expected to expand at a CAGR of 14% to US$455 billion by the end of Cost-Effectiveness 2024. ●The Gig Economy minimizes the costs ●NITI Aayog Report, 2022: According and expenses. This is because businesses to NITI Aayog’s report on ‘India’s can hire off-site workers which Booming Gig and Platform Economy’, significantly reduces the need to the share of gig workers in total workers maintain expensive workspaces and large offices.

4. ●Further, hiring independent contractors ●Independent contractors in the gig eliminates large expenses such as economy are not required to work in employee benefit packages, retirement offices, rather, they work in their own plans, and paid sick leaves. spaces. ●It varies from someone working in a Eliminates the middlemen home office writing articles to someone working from their car driving for Uber. ●The gig economy provides a labour force It provides them independence to travel that can directly match the company to or do other work and at the same time do the freelancer. the gig work. ●This removes the hassle of dealing with a middleman throughout the hiring Flexibility process, thus, making it easier to find ●Workers who operate in the gig people to complete the job. economy are allowed to work any Output Production number of hours which they desire. ●A task will be given to a worker with an ●Individuals who are interested in end date, but when they work on it is accumulating extra income are attracted completely up to their discourse. to applying for a position that offers a unique work schedule. Income ●Such flexibility directly impacts employee motivation, which in turn, The gig economy is an increasingly attractive creates a positive correlation to output market due to the sheer flexibility that allows production. individuals to earn extra income. Advantages for the Employees/Gig Disadvantages of a Gig Economy Workers Lack of Worker Commitment Independence ●Gig Economy workers are not as invested in their organization as if they were hired full-time.

5. ●Further, the gig economy companies are generally not known to incentivize their employees leading to the creation of loyalty issues. ●It reduces the likelihood of further work and decreases motivation to work overall. Gig Works can create a feeling of isolation, which negatively affects the production and mental health of the individuals. Steps taken in India to solve Gig Worker's Problems ●The state of Rajasthan passed legislation named the Rajasthan Platform Based Gig Workers Welfare) Act, 2023. It aimed to ensure the welfare of the gig workers. ●A similar bill is being currently prepared by the state of Karnataka to address the issues of Gig Workers in the state. Ethical Issues (Registration and ●Organizations that operate in a gig economy are criticized for the unethical practices performed by them. ●Their employment is casual which does not offer benefits, and generally does not offer competitive wages. Draft Karnataka Platform-based Gig Disadvantages for Workers Workers (Social Security and Welfare) Bill, 2024 Lack of Benefits ●Grievance Redressal Mechanism: The ●Organizations which operate in a gig economy do not provide benefits to their workers. ●Independent contractors and freelancers are not completely “employees” of the business. bill provides a grievance redress mechanism for gig workers such as cab drivers, delivery people, carpenters, considered plumbers and repairers. Bill allows gig workers to seek grievance redressal Personal Expenses under the Industrial Disputes Act of ●Organizations within the gig economy are not required to cover personal expenses such as cost of Internet data used by the employees. ●It also does not provide the rent of the personal spaces which are used by the individuals for work. 1947 ●Recognition of Formal Rights: The bill aims to bring formal rights and social security to the Gig workers. It also aims to protect workers from arbitrary termination and aims to ensure basic Isolation minimum social security for them.

6. ●Inspection Rights: The Bill introduces and will impact the environment of Ease wide-ranging powers of inspection to the of doing Business. ●Equating with Regular Employees: state government including algorithms, contracts, and day-to-day operations of Some of the provisions of the bill try to platforms. create a parallel system of employment to ●Notice Period: Companies are required the standard Employee-Employer to include a notice period to be served to relationship by equating gig workers to gig workers and grounds for full-time employees. Further, the termination. proposed personal liability for directors ●Cancellation of Orders: It also includes and employees in cases of offences is the number of orders gig workers can overly harsh. cancel per week. Conclusion ●Welfare Fee: The bill states that welfare The gig economy in India is increasing at a fast pace with India being the 5th largest fee should be levied at 1-2 per cent of the payout to the gig worker per transaction supplier of gig workers operating from or 1-2 per cent of the state-specific net India. The lack of welfare schemes, revenue of the aggregator (whichever is incentives and several other benefits higher), capped at a maximum of Rs 1-2 which the gig workers lack becomes a per transaction. roadblock in the welfare of these Gig Workers. It will surely pose a ‘Social Limitations of the Bill ●Ease of Doing Business: The bill has Security’ problem inIndia when India’s invoked the ‘Inspector Raj’ while it demographic dividend reduces and the provides for the inspection of algorithms, current workers will become older or contracts, and day-to-day operations of retire. Hence, the bill passed by the platforms. It further requires gig workers Rajasthan government and the current bill to seek grievance redressal under the by the Karnataka government is a right Industrial Disputes Act of 1947, step towards ensuring social security net essentially equating them with for such workers. ‘workmen’. (Regular Employee). These Source: The Hindu, Business Standards, are in contravention of the labour codes NITI Aayog

7. Art and Culture (Prelims) Kharchi Puja ●Kharchi Puja is a famous festival which is celebrated in the Indian state of Tripura and by Tripuri people outside the state. ●It is celebrated on the Shukla Paksha Ashtami (eighth lunar day) of the month of Ashad according to the Hindu calendar. It is celebrated in July. ●The Puja is celebrated with the worship of the fourteen gods that make up the Tripuri people’s dynasty deity. ●Kharchi Puja Festival is a week-long royal Puja that takes place on the eighth day of the new moon. Heading Recently, Kharchi Puja was celebrated in the state of Kerala with a great Pomp and Show. About ●The word Kharchi is derived from Khya, which means “Mother Earth.” it is also formed from ‘Khar’ for sin and ‘Chi’ for purification. It implies that puja is conducted to clean the kingdom’s people of their sins. Source: The Hindu

8. Economy (Schemes) (Prelims) PM-SHRI Scheme ❖Wide range of learning experiences ❖Good physical infrastructure and ❖Appropriate resources are conducive Heading Recently, three states, Delhi, Punjab and West Bengal declined to participate in the to learning. PM SHRI Scheme. ●Exemplar Institutions: It aims to upgrade at least 14,500 government About schoolsinto “exemplar” institutions to PM SHRI (Prime Minister's Schools for showcase the implementation of the Rising India) National Education Policy (NEP) 2020. More than 20 lakh students are expected Nodal Agency: Department of School to be the direct beneficiaries of the Education and Literacy scheme. Nodal Ministry: Ministry of Education ●Period: The Scheme is proposed to be implemented over 5 years w.e.f. 2022- PM SHRI is a centrally sponsored scheme by 23 to 2026-27. the Government of India which aims to ●Budget: It is a centrally Sponsored develop more than 14500 PM SHRI Schools scheme in which the centre will bear managed by Central Government/State/UT 60% of the expenses while states will Government/local bodies. bear 40%. A total budget of over Rs 27,000 crore for the next five years has ●These Schools include KVS and NVS in been allocated for the scheme. which a number of provisions have been made such as: ❖Providing a safe and stimulating Source: The Hindu, PM Shree Website learning environment

9. QUESTION 1. Who are Gig Workers? Discuss the Which of the following statements classification of different types of Gig is/are Correct? A. 1 Only Workers. B. 2 Only 2. Discuss the advantages and C. Both 1 and 2 disadvantages of the Gig Economy. D. Neither 1 nor 2 1. Consider the following statements with reference to the Gig Economy; Answer: B 1. Gig Workers are entitled to get 3. Consider the following statements bonuses and other complimentary with respect to PM-SHRI Scheme: benefits like standard workers. 1. It is being implemented by the 2. Gig Workers can work remotely and Department of School Education and are hired according to contractual terms. Literacy. 3. Freelancers and Platform workers are 2. It aims to open new Schools with state covered under the Gig economy. of art technology according to National Education Policy. Which of the following statements 3. The Scheme is proposed to be is/are Correct? A. One Only implemented over 10 years. B. Two Only Which of the following statements C. All Three is/are Correct? D. None A. One Only B. Two Only Answer: B C. All Three 2. Consider the following statements D. None with respect to Kharchi Puja: 1. It is celebrated in Telangana. Answer: A 2. The word Kharchi is derived from Khya, which means “Mother Earth.