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Economic Survey 2025-26 Highlights Income Insecurity for Gig Workers, Urges Minimum Pay and Algorithm Transparency

By Lokmat Times Desk | Updated: January 29, 2026 16:11 IST

The Economic Survey 2025-26 has highlighted serious income concerns in India’s rapidly expanding gig economy, noting that “About 40 ...

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The Economic Survey 2025-26 has highlighted serious income concerns in India’s rapidly expanding gig economy, noting that “About 40 per cent of gig workers report earnings below Rs 15,000 per month.” Presented in Parliament on Thursday, the Survey urged strong policy measures to improve wage fairness, including the introduction of minimum per-hour or per-task payments that factor in waiting time. It stressed that such reforms could narrow the cost gap between regular and gig employment. The Survey also said gig work should be a matter of genuine choice rather than a compulsion driven by weak labour demand, skill mismatches, or the absence of social security.

Despite the sector’s rapid growth, the Survey pointed out that income instability remains a major challenge, limiting gig workers’ access to formal credit and financial services. Many workers fall under ‘thin-file’ credit categories, restricting borrowing options. It warned that platform algorithms now dominate job allocation, wage determination, performance tracking, and demand-supply matching, raising concerns around algorithmic bias, stress, and burnout. Reiterating that “About 40 per cent of gig workers report earnings below Rs 15,000 per month,” the Survey added that inadequate skilling and fears of job displacement due to Artificial Intelligence (AI) and Machine Learning (ML) further increase worker vulnerability.

Calling platforms the backbone of the gig ecosystem, the Survey stated, “Platforms have become essential gig-market infrastructure for finding workers and work,” cautioning that such concentration of power raises concerns around fees, algorithms, and worker protections. It recommended stronger competition norms, data access, and algorithmic transparency, while reshaping the social contract to ensure fairer outcomes for workers. The Survey also suggested co-investment by platforms and employers in tools and training, noting, “Many cannot upgrade from low- to medium-skilled gigs because they lack tools (for example, a bike, car, or specialised equipment).” It observed that the gig workforce has grown 55 per cent to 1.2 crore in FY25 and is projected to contribute Rs 2.35 lakh crore to GDP by 2029-30.

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