Rise of Temporary Employees in India: BSE 500 Report
Mumbai, November 12: A recent report for Financial Year 2026 (FY26) reveals a significant increase in the number of temporary employees in India, now accounting for 17% of the total workforce, up from 11% three years ago. This trend indicates a shift towards flexibility in hiring practices among companies, as highlighted in a study of 353 firms listed on the BSE 500.
The report, which compares data from FY23 to FY26, includes various types of temporary workers, such as fixed-term employees, contract workers, and gig workers, who differ from permanent staff.
Additionally, the research indicates a decline in the number of permanent employees, as companies prefer hiring temporary staff to adapt to changing business needs. This flexibility allows businesses to adjust their workforce without the long-term commitment associated with permanent positions, although it raises concerns about job security among employees.
Despite similar salary levels for temporary and permanent employees, the impact of job security varies significantly. Fixed-term employees often receive comparable pay and benefits but face job termination upon contract completion, forcing them to start anew.
The cost of retaining permanent employees has surged by 22% year-on-year, reaching the highest levels in three years. This increase in business costs may further accelerate the trend of hiring temporary workers, according to industry experts.
The report also highlights a decline in women’s participation in the workforce, dropping from 33% in FY25 to 31.5% in FY26, although this is an improvement from 27% in FY23. The share of women in temporary roles has increased, reflecting a shift in hiring dynamics.
In sectors like banking, financial services, and insurance, women’s participation has decreased from 31% in FY25 to 28% in FY26, while consumer-centric sectors have seen an uptick in female employment.
Experts suggest that changes in labor codes and the evolving nature of work are influencing hiring patterns, emphasizing the need for employees to continuously upgrade their skills to remain competitive in the job market.
As companies navigate these changes, the long-term implications for job security and gender representation in the workforce remain critical areas for observation.
