Chennai: March 16, 2025
Manufacturers of electric two-wheelers aiming to provide value-driven models for gig economy workers stand to benefit from a recent Tamil Nadu initiative that will provide a Rs 20,000 subsidy to decrease the financial burden on these workers and encourage the use of electric vehicles (EVs).
Furthermore, the state government is improving social security benefits for online workers by offering additional benefits for disability and accidental death, which will help an estimated 150,000 people.
Additionally, Tamil Nadu intends to establish gig worker lounges in Chennai and Coimbatore, offering necessary amenities for relaxation and recovery.
The central government is also taking action to assist gig workers on a larger scale. Finance Minister Nirmala Sitharaman unveiled a gig worker social security program in the most recent budget announcement. It includes e-Shram portal registration and identity card provisions. Although the distinctions between gig and platform workers are still not entirely clear, this initiative seeks to formalize gig work and guarantee access to social security benefits.
Section 2(61) of the Code on Social Security, 2020, defines a platform worker as “an individual engaged in or undertaking platform work,” marking the first recognition of gig workers in labor laws.
With roughly 77,670 EVs sold in the current fiscal year and nearly 1.14 lakh units sold in FY24, Tamil Nadu is currently the state with the highest sales volume.
In reference to the Rs 20,000 subsidy for about 2,000 electric vehicles intended exclusively for internet-based service workers registered with the Gig Workers Welfare Board, a leading industry analyst stated, “The initiative will also encourage OEMS to introduce higher spec products for gig workers who typically use these vehicles for purposes beyond gig work.”
