India’s Gig Economy Is Exactly How It Should Be | Gig Workers, Wages & Market Reality

India’s gig economy has certain characteristics that make it difficult for me to be on the side of the union leaders. While gig workers, such as delivery riders for Zomato, Swiggy, Blinkit and similar services, have a wide range of educational backgrounds, a big chunk completed no more than elementary school. Those holding graduate or higher degrees of education are few and far between, treating the jobs as makeshift arrangements. Now, if 47.8% have finished higher secondary (Class 12), 30% have secondary education (Class 10) or below, I wonder how they can be paid a minimum monthly wage of ₹40,000 each, which the Telangana Gig and Platform Workers Union is demanding.
(India gig economy, gig workers wages India, platform workers India, Zomato Swiggy delivery riders salary, Telangana gig workers union)

One can’t say this money is not enough to fend for one’s family, as these workers mostly live in shanties. Cost-of-living estimates for a family of four in metros range from ₹20,000-₹46,500/month for survival basics, but it would be highly irresponsible of me to produce two babies if I am earning so little. Even ₹1.5 lakh/month may fall short for a comfortable life, including education and healthcare, but that is middle-class living, and the middle class is not into these jobs; the poor are. Anyway, whether my salary can sustain my family is strictly not a concern of my employer, who will pay me only as much as the value of my work, which is fair.
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About 23% of delivery drivers are students currently, using gigs to supplement income while studying. They can’t demand ₹40,000 PM either.
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Next, whereas India’s youth unemployment rate hovers around 17-20%, pushing even degree holders into flexible, low-barrier work, this compulsion arises from the issue with our education system that does not produce trained workers. The industry has vacancies but is not getting competent workers, while educated candidates have dream jobs in mind, who would turn down offers that don’t fit their fancy.
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Gig work requires skills no more than navigation, time management, customer interaction, smartphone and vehicle handling, a skill-set that does not merit a payment of ₹40,000 PM either.
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Market forces dictate pay based on supply/demand, and with 15-24 million gig workers projected by 2030, oversupply keeps wages low (often ₹10,000-₹25,000/month for full-time riders).
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India’s average monthly salary across sectors is around ₹29,000-₹32,000 (or ₹3.5-3.8 lakh annually): Skilled workers average ₹48,000/month, while entry-level or unskilled roles are lower. Even non-IIT entry-level engineers are getting ₹20,000-₹25,000/month from small firms, which makes the demand of ₹40,000/month for a Class XII pass—or a graduate who barely got his degree from a state whose education standards are pathetic—atrocious.
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Some firms try to be benevolent with this lot by offering them better jobs. These companies end up hassling the manager who must hand-hold the low-skilled, semi-educated workers for all 8 hours of the job.
(workforce productivity India, management challenges India)

These youngsters lack interest in vocational training (plumbing, welding, carpentry, etc), preferring gigs over traditional blue-collar paths, which exacerbates the mismatch. However, this isn't universal; gigs serve as a bridge for migrants or those from rural areas with incomplete education, filling a gap in an economy where formal jobs grow slower than the workforce.
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Unions argue that the physical risks, long hours (12-16 hours/day), and lack of benefits justify a floor equivalent to a dignified life, regardless of education, similar to global living wage movements. But gigs are voluntary for flexibility, and mandating high wages could shrink the sector, leaving unqualified workers with even fewer options.
(gig workers unions India, living wage debate India, labour unions India)

India isn’t the only economy ‘ill-treating’ gig workers, by the way. In 2001, the Oxford English Dictionary added the term "McJob," defining it as “an unstimulating, low-paid job with few prospects, especially one created by the expansion of the service sector”. McDonald’s launched a public protest against the definition in 2007, claiming it was “out of date” and “insulting” to its workforce.
(global gig economy, service sector jobs, McJob definition)