As per a report by ASSOCHAM published on IBEF, India’s freelance market is expected to increase by US$455 billion at a CAGR of 17% and is likely to create at least 350 million jobs by 2025. Currently there are approximately 15million freelance workers working on projects in IT, HR, and design fields. Most of the millennial population is showing preference towards gig contracts as it gives them flexibility to work in their own space and try new avenues to build their experiences.
Some key drivers behind the growth of freelance opportunities are –
Freelancers are paid differently for the services they render. While some charge a fixed rate, others may charge by the hour, for the project or actual unit of work delivered. It is up to the engaging company to draw a clear engagement model to protect the interests of both parties. The recent ‘Code on Social Security’ passed by the government provides workers with life and stability cover in the form of accidental insurance, and health benefits through nominal contributions of 1-2% of annual turnover by the aggregator or platform. The contribution made by the aggregator will not exceed 5% of the amount payable to the freelance workers. The establishment of a ‘National Social Security Board’ has been proposed to supervise and formulate schemes for the well-being of freelancers and platform workers.
The freelance economy is here to stay and expected to continue growing as many of the full-time workers transition to the gig model. The positive amalgamation of the freelance and full-time employee model within the company has to be facilitated by companies.