Vidarbha’s Gig Workers: How New Policies Are Changing Life for Drivers and Delivery Staff

thenewsdirt
Aug 28
5 min read

Platform-based workers across Maharashtra, particularly in the Vidarbha region, continue to navigate uncertain terrain as the state prepares comprehensive legislation while national policies remain largely unimplemented.

In cities like Nagpur and Amravati, thousands of delivery workers, ride-hailing drivers, and freelance labourers operate without formal legal protections or social security benefits, despite mounting regulatory promises at both state and national levels.

The Maharashtra Labour Department has begun mapping over five lakh gig workers across more than 320 e-commerce platforms as part of an ambitious policy framework expected to be unveiled by year-end. This initiative emerges against the backdrop of the Code on Social Security 2020, which remains largely dormant nearly five years after its enactment, leaving millions of platform workers across the country in regulatory uncertainty.

Ground Reality for Vidarbha Workers

Nagpur, Maharashtra's third-largest city with approximately 28 lakh residents, hosts around 2-3 lakh migrant labourers alongside a substantial gig economy workforce.

The city's platform-based workers, primarily young urban and suburban residents, face daily pressures that extend far beyond flexible working hours.

Research conducted in Nagpur reveals that delivery workers earn approximately Rs 14,000 monthly, with actual take-home income dropping to Rs 6,080 after accounting for vehicle maintenance, fuel, and mandatory expenses like branded delivery bags costing Rs 2,000.

Vishal, a delivery worker profiled in recent studies, represents thousands of similar workers who spend over Rs 7,920 monthly on operational expenses.

His daily earning of roughly Rs 200 for ten-hour shifts places him on par with rural agricultural labourers, despite urban cost pressures.

The absence of tip culture in Nagpur, unlike metropolitan cities, further constrains earnings potential. Workers frequently pay substantial fines for traffic violations while racing to meet algorithmic delivery deadlines that ignore real traffic conditions.

Amravati, the second-largest city in the Vidarbha region, operates multiple platform services, including Ola Auto, Ola Bike, Ola Mini, and Ola Prime Sedan.

The city's ride-hailing ecosystem demonstrates the geographic spread of gig economy penetration beyond major metropolitan areas. However, worker earnings and protection mechanisms remain similarly inadequate.

Legislative Framework Developments

The Maharashtra government's forthcoming policy builds on lessons from pioneer states. Rajasthan's Platform-Based Gig Workers Registration and Welfare Act 2023 established India's first comprehensive state-level framework, mandating aggregator registration, worker databases, and welfare fund contributions ranging from one to two percent of transactions.

Karnataka followed with its Platform-based Gig Workers Social Security and Welfare Ordinance 2024, requiring welfare fees of one to five percent per transaction and establishing grievance redressal mechanisms.

Maharashtra Labour Minister Akash Fundkar announced that the state's draft bill proposes a cess on companies linked to tax and GST payments, creating a welfare fund similar to the construction workers' model that generates over Rs 100 crore annually.

The proposed framework encompasses health insurance, life cover, fixed income support, and educational benefits for workers and families. Registration drives will build comprehensive databases essential for benefit delivery.

The national Code on Social Security 2020 formally recognised gig and platform workers for the first time in Indian labour legislation, defining them as individuals working outside traditional employer-employee relationships. The Code envisions social security schemes including life and disability cover, accident insurance, health and maternity benefits, and old-age protection. However, implementation has stalled due to rule-making delays at the state level.

Social Security Mechanisms and Implementation Challenges

The e-Shram portal, launched in August 2021, represents the primary national mechanism for unorganised worker registration.

Maharashtra has registered 1.73 crore workers on the platform, ranking fifth nationally behind Uttar Pradesh, Bihar, West Bengal, and Madhya Pradesh.

Despite these numbers, substantial registration gaps persist, particularly among platform workers who often remain unaware of available schemes.

Current social security provisions for registered e-Shram workers include Rs 2 lakh accidental insurance coverage through Pradhan Mantri Suraksha Bima Yojana, though implementation remains patchy.

The 2025 Union Budget announced plans to extend Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana health coverage to platform workers, but operational guidelines await publication.

In Vidarbha specifically, agricultural labour has historically dominated employment patterns, with the region hosting India's highest share of agricultural workers. This context shapes how gig economy opportunities are perceived and utilised. Unlike seasonal agricultural work, platform-based employment offers year-round income potential but lacks traditional employment protections.

Platform workers across Nagpur and Amravati lack structured grievance mechanisms beyond platform-provided customer service channels.

Workers frequently report unresponsive helplines, arbitrary account blocks without warning, and unclear dispute resolution processes. The absence of recognised collective bargaining rights compounds these challenges, as workers cannot form traditional trade unions under existing legislation.

The Indian Federation of App-Based Transport Workers, led by National General Secretary Shaik Salauddin, has emerged as a primary advocacy organisation. The federation filed petitions in the Supreme Court of India asserting that gig workers maintain employment relationships with aggregator companies, entitling them to social security benefits under existing labour laws.

Salauddin has coordinated nationwide collective action and policy discussions, contributing to state-level legislative developments.

National Human Rights Commission discussions have highlighted the need for targeted regulatory frameworks addressing long working hours, financial strain, and physical exhaustion among gig workers.

Over 83 per cent of app-based drivers work more than ten hours daily, with policies like ten-minute deliveries creating unrealistic targets that result in avoidable accidents. Women face additional challenges including safety risks, erratic schedules, and physical demands that discourage participation.

Recent Maharashtra government consultations included representations from worker groups and platform companies in Pune and Mumbai.

Workers voiced concerns about job insecurity, the absence of benefits, and erratic income patterns. The state labour department's mapping exercise aims to establish centralised databases essential for effective benefit delivery and rights protection.

The regulatory landscape for platform workers in Vidarbha reflects broader national challenges in adapting labour laws to digital economy realities. While legislative momentum builds at the state level, implementation gaps persist in existing schemes.

The success of Maharashtra's forthcoming policy framework will depend on robust enforcement mechanisms, adequate funding models, and genuine stakeholder consultation processes that prioritise worker welfare alongside platform business interests.