Economic Survey pushes for policy that makes gig work a choice, setting minimum per hour or task earnings

Over the last few weeks, a debate has raged about the condition of workers engaged by delivery platforms such as Zomato, Blinkit, and Swiggy, among others, with the aggregators coming under fire for low pay and short delivery-time promises. Amid the debate, the Ministry of Labour and Employment intervened earlier this month to ask these companies to drop their ‘10-minute delivery’ timelines. This came after a nationwide strike by thousands of delivery workers on New Year’s Eve, demanding better pay, safety protection, and social security.

However, Eternal Chief Executive Officer Deepinder Goyal – who has now stepped down to become the group’s Vice Chairman – said on January 1 on social media platform X that Zomato and Blinkit “delivered at a record pace yesterday, unaffected by calls for strikes that many of us heard over the past few days.” Goyal then went on to argue that critics don’t understand how the gig economy works, with the wider start-up and investor community backing him up.

“…if a system were fundamentally unfair, it would not consistently attract and retain so many people who choose to work within it. Please don’t get swept up by narratives pushed by vested interests,” Goyal posted on X on January 1.

Citing a categorisation of gig workers based on income reliance and preference, formulated by consultancy firm McKinsey for US and UK, the Survey said policy should try and move gig workers up the chain. As per McKinsey, gig workers fall in four categories: i) free agents (primary income and prefer gig work), ii) casual earners (gig work for supplementary income or skills), iii) reluctants (rely on gig work but prefer regular jobs), and iv) financially strapped (gigs to make ends meet).

“Policy should aim to move gig workers from categories ‘iii’ and ‘iv’ to ‘i’ and ‘ii’, making gig work a choice rather than a necessity. The CSS (Code on Social Security) formally recognises gig workers; policy should now prioritise upward mobility of low‑skilled workers through upskilling, move into better-paying jobs, and make gig work a stable, reliable income source.”

Minimum earnings needed

The Economic Survey, while noting that the gig economy is booming and growth of gig workers is outpacing overall employment, said addressing its challenges is “crucial to ensuring long-term and equitable growth”.

“The Labour Codes have formally recognised gig and platform workers, expanding social security, welfare funds, and benefit portability. Going forward, ensuring algorithmic transparency and promoting worker-friendly practices will be crucial,” the Survey said.

It criticised the algorithms of platforms which control work allocation, monitor performance, wages, and match supply and demand. This, the Survey said, raises concerns about algorithmic biases and burnout. Citing data from the Indian Staffing Federation, the Survey said that about 40% of gig workers report earnings less than Rs 15,000 per month.

The Indian Express has previously reported how delivery apps exercise algorithmic control over workers. Typically, strategies include incentive structures that are gamified to extract maximum compliance and the use of sonic punishment upon order rejections and delays to moderate workers’ behaviour.

In a series of posts on X on January 2, Goyal of Eternal said delivery partners “are not overworked on our platforms” and that average earnings per hour, excluding tips, for a delivery partner on Zomato had increased by 10.9% in 2025 to Rs 102.

The Survey, though, said policy should not only target algorithmic transparency, but also reorganise the “social contract so that gig work benefits workers more fairly”. It also said policy can reduce the cost gap between regular and gig work by “limiting incentives to avoid mandatory benefits and by setting minimum per-hour or per-task earnings (including waiting time)”. Platforms and employers can also be encouraged to co-invest in assets and training, and help workers manage unstable incomes through access to low-cost emergency savings schemes, portable social security benefits, and financial-literacy programmes.