Gig and Platform Workers: Social Security Coverage for the New-Age Workforce

Introduction

The digital revolution has fundamentally transformed India’s employment landscape, creating a vast ecosystem of gig and platform workers who power the country’s urban economy. From delivering hot meals to your doorstep to providing ride-hailing services, these workers form the backbone of India’s modern service sector. Yet until recently, millions of these workers operated in a legal vacuum, devoid of the social security protections that traditional employees take for granted. The implementation of the Code on Social Security, 2020 in November 2025 marks a watershed moment in Indian labour law, formally recognizing gig and platform workers for the first time at the national level. [1]. This recognition comes after years of sustained advocacy by worker unions and follows pioneering state-level legislation that demonstrated the urgent need for legal protections in this rapidly expanding sector.

The Gig Economy in India: Scale and Significance

India’s gig economy has witnessed exponential growth over the past decade, transforming from a nascent concept into a critical component of the nation’s economic infrastructure. According to estimates from NITI Aayog, the sector employed approximately 7.7 million workers in 2020, a figure projected to surge to 23.4 million by 2029-2030 [2]. This remarkable expansion reflects not only technological advancement but also the harsh reality of limited formal employment opportunities for India’s youth. The platforms facilitating this economy, including Uber, Ola, Swiggy, Zomato, Urban Company, and numerous others, have created a new category of work that exists in the grey zone between traditional employment and independent contracting. These workers typically lack steady wages, paid overtime, healthcare benefits, or any form of job security, despite performing essential services that keep India’s cities functioning.

Legislative Framework: The Code on Social Security, 2020

The cornerstone of social security protection for gig and platform workers in India is the Code on Social Security, 2020, which Parliament passed on September 23, 2020 [3]. This legislation represents one of four labour codes designed to consolidate and modernize India’s complex web of labour laws, amalgamating nine previous enactments into a single framework. The Code came into force on November 21, 2025, finally bringing legal recognition to the millions of workers in the gig economy. The Code explicitly defines a “gig worker” as a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationships. Similarly, it defines “platform work” as work arrangements outside conventional employment where organizations or individuals use online platforms to access services in exchange for payment. Most significantly, the Code defines “aggregator” as a digital intermediary connecting buyers and sellers, explicitly bringing platform companies under regulatory oversight.

The legislative framework mandates several critical protections. Aggregators must contribute between one and two percent of their annual turnover, capped at five percent of the amount payable to gig and platform workers, into a dedicated social security fund [4]. This fund, administered by the Central and State Governments, aims to finance various welfare schemes including life insurance, disability insurance, health benefits, maternity benefits, and old-age protection. The Code establishes a National Social Security Board responsible for recommending schemes for different categories of workers and monitoring their implementation. State governments must similarly constitute State Unorganised Workers’ Boards to oversee welfare programs at the regional level. Each worker receives an Aadhaar-linked Universal Account Number, ensuring portability of benefits when moving across states or between platforms.

Key Provisions and Benefits Under the Code on Social Security, 2020

The social security provisions extend across multiple dimensions of worker welfare. The Code provides for health insurance coverage, ensuring that gig workers can access medical care without facing financial catastrophe. Maternity benefits protect women workers during pregnancy and childbirth, addressing a critical gap in protection for female gig workers. Disability and accident insurance offers a safety net when workers face occupational injuries, while life insurance provides support for workers’ families. Perhaps most importantly, old-age pension schemes recognize that gig workers, like traditional employees, need income security in their later years. The Code also introduces novel protections, such as deeming accidents occurring while commuting between residence and workplace as arising in the course of employment, a provision that acknowledges the realities of gig work where the boundaries between work and personal time often blur [5].

State-Level Pioneering: The Rajasthan Model

Even before the central legislation took effect, several states took proactive steps to protect gig workers within their jurisdictions. Rajasthan led this movement by passing the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023 on July 24, 2023, becoming the first state to specifically legislate for platform-based gig workers [6]. This groundbreaking legislation established the Rajasthan Platform-Based Gig Workers Welfare Board, mandated registration of all gig workers and aggregators, and created a dedicated welfare fund financed through a welfare cess ranging from one to two percent of each transaction value. The Act requires aggregators to deposit this cess by the fifth day of each month and introduced a Central Transaction Information and Management System to monitor all platform payments transparently. Registered workers receive unique identification numbers valid across all platforms, enabling comprehensive tracking of their employment history and entitlements. The legislation also established a grievance redressal mechanism, allowing workers to petition designated authorities regarding violations of their rights. Non-compliant aggregators face substantial penalties, including fines up to five lakh rupees for first contraventions and fifty lakh rupees for subsequent violations.

Evolution and Expansion: Karnataka, Bihar, and Jharkhand

Following Rajasthan’s example, Karnataka enacted the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025 in August 2025, incorporating all provisions of the Rajasthan law while introducing several improvements [7]. Karnataka’s legislation increased the welfare fee range to between one and five percent based on aggregator categories and expanded social security benefits beyond insurance to include health coverage, accident protection, and financial assistance. The Act established a two-tiered grievance procedure, requiring aggregators to maintain Internal Dispute Resolution Committees while allowing escalation to the Welfare Board if issues remain unresolved within fourteen days. Karnataka also mandated that aggregators provide workers with a human point of contact for queries, addressing the frustration many gig workers experience when dealing with algorithm-driven management systems. Bihar and Jharkhand followed suit in August 2025, bringing the total number of states with dedicated gig worker legislation to four. These state laws have created parallel frameworks that, while aligned with central legislation, provide more detailed implementation mechanisms and stricter enforcement provisions.

Judicial Interpretation and Worker Classification

Indian courts have played a crucial role in shaping the legal status of gig workers, often stepping in where legislation lagged. The landmark case of Indian Federation of App-Based Transport Workers v. Union of India, filed before the Supreme Court in September 2021, directly challenges the classification of gig workers as independent contractors rather than employees [8]. The petitioners, representing thousands of Uber, Ola, Swiggy, and Zomato workers, argue that their exclusion from traditional labour protections violates Articles 14, 21, and 23 of the Constitution, which guarantee equality, right to life, and protection from forced labour. The case remains pending, but its significance cannot be overstated. If the Court rules that gig workers qualify as employees, it would fundamentally reshape the legal landscape, potentially extending minimum wage protections, the right to unionize, and comprehensive labour law coverage to millions of workers.

Another significant case, X v. Internal Complaints Committee, ANI Technologies Pvt. Ltd., decided by the Karnataka High Court in 2019, demonstrated how courts can expand worker protections even within existing legal frameworks [9]. When a female passenger experienced sexual harassment by an Ola driver, the court had to determine whether the driver qualified as an “employee” under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The court conducted a detailed analysis of the control Ola exercised over its drivers, examining how the platform determined rates, charges, service standards, vehicle maintenance requirements, booking acceptance policies, and payment methods. Finding that this level of control went far beyond that of a mere technological intermediary, the court ruled that Ola drivers do qualify as employees for purposes of the POSH Act. While this decision does not automatically extend employment status across all labour laws, it established an important precedent that courts will examine the substance of the relationship rather than accepting platform companies’ self-characterization as mere intermediaries.

Challenges in Implementation

Despite these legislative and judicial advances, significant implementation challenges persist. The division of labour policy between the central and state governments creates potential for uneven access to protections. State governments bear responsibility for designing, notifying, and administering many schemes needed to make the Code operational, raising the possibility that workers in some states will enjoy robust protections while those in other states face delays or inadequate support. The experience of Rajasthan illustrates this challenge. Although the state passed its gig worker legislation in July 2023, the change in government following the December 2023 elections has stalled implementation, with the new administration yet to notify the rules necessary to operationalize the Act [2]. This demonstrates how political will and administrative capacity critically influence whether legal protections translate into real-world benefits.

The actual benefits available to workers remain unclear. While the Code creates the framework for social security schemes, neither the central legislation nor most state laws specify the exact nature, quantum, or eligibility criteria for benefits. Workers registering on the government’s E-Shram portal often find little incentive to do so, as the system does not address their immediate concerns regarding fluctuating earnings, arbitrary account suspensions, or sudden terminations. Trade unions have criticized this gap, noting that without addressing fundamental issues like minimum wages and employment security, social security benefits alone cannot substantially improve workers’ lives. The requirement that aggregators contribute based on turnover or transaction values also raises questions about how contributions will be tracked across multiple platforms and how the system will prevent companies from underreporting to minimize their obligations.

Constitutional and Rights-Based Perspectives

Beyond statutory provisions, gig workers’ claims to social security rest on constitutional foundations. Article 21 of the Indian Constitution, which guarantees the right to life, has been interpreted expansively to include the right to livelihood and dignified working conditions. Workers’ advocates argue that the denial of social security to gig workers violates this fundamental right, as it leaves them vulnerable to poverty, ill-health, and destitution despite their labour contributing significantly to the economy. Article 23, which prohibits forced labour, provides another constitutional basis for worker protections. When platform companies exercise extensive control over workers’ activities, compensation, and working conditions while denying them the benefits associated with employment, some commentators argue this creates a form of exploitative labour that Article 23 was designed to prevent. Article 14’s guarantee of equality before the law supports the argument that gig workers should not receive inferior protections compared to traditional employees performing similar work under similar conditions of subordination and economic dependence.

Comparative Analysis: International Approaches

India’s approach to gig worker regulation sits within a broader global conversation about how to balance the flexibility that platforms and workers value against the need for adequate protections. The United Kingdom’s Supreme Court decision in Uber BV v. Aslam established that Uber drivers qualify as “workers” entitled to minimum wage and paid leave, rejecting the company’s argument that drivers operated as independent contractors. The court examined the degree of control Uber exercised and concluded that this control, combined with drivers’ economic dependence on the platform, made them workers in substance if not in form. California’s Assembly Bill 5, which reclassified many gig workers as employees using an “ABC test,” represented an even more aggressive approach, though it faced significant pushback and subsequent modifications. These international precedents demonstrate different strategies for addressing the gig worker challenge, each with distinct implications for platform business models, worker welfare, and market flexibility.

The Path Forward: Gaps and Recommendations

While India’s new labour codes represent significant progress, substantial work remains to ensure gig workers receive meaningful protection. First and most urgently, both central and state governments must finalize and notify the rules necessary to operationalize the Code’s provisions. Without these implementing regulations, the statutory framework remains largely aspirational. Second, the definition of benefits must be clarified and standardized across jurisdictions to prevent a patchwork system where workers’ protections depend on their geographic location or the specific platform they work for. Third, the legislation must address income security more directly. Current provisions focus on insurance and pension schemes, but they do not establish minimum wages, maximum working hours, or protections against arbitrary deactivation or unfair termination. Trade unions have consistently emphasized that social security, while important, cannot substitute for fair compensation and job security.

Fourth, the grievance redressal mechanisms need strengthening. Many gig workers report that algorithmic management systems make it difficult or impossible to appeal decisions or resolve disputes, as they have no human contact point within the platform companies. State legislation like Karnataka’s requirement for human points of contact represents progress, but this must be implemented uniformly and backed by strict enforcement. Fifth, workers must have genuine opportunities to participate in collective bargaining and union activity. The Code and state laws establish boards with worker representation, but the selection of these representatives must be democratic and transparent rather than being controlled by governments or platforms. Finally, penalties for non-compliance must be enforced consistently. Legislation that imposes substantial fines for violations means little if regulatory agencies lack the resources or political support to conduct inspections and pursue enforcement actions against powerful platform companies.

Conclusion

The recognition of gig and platform workers under India’s Code on Social Security, 2020 marks a critical turning point in the evolution of labour law. After years of operating in legal limbo, millions of workers now have formal status and, at least in principle, access to social security protections. The pioneering efforts of states like Rajasthan, Karnataka, Bihar, and Jharkhand demonstrate that subnational governments can drive innovation in worker protection even when central action lags. Judicial interventions, particularly in cases examining the nature of platform control over workers, continue to refine our understanding of employment relationships in the digital age. Yet recognition alone does not ensure protection. The gap between legislative frameworks and lived reality remains substantial. Many workers report that the new codes have not yet improved their daily working conditions, earnings, or security. Implementation challenges, including the need for detailed implementing rules, adequate funding for social security schemes, effective grievance mechanisms, and robust enforcement, must be addressed if the promise of these reforms is to be realized. The coming years will determine whether India’s legal framework for gig workers represents a genuine transformation in labour relations or merely a symbolic gesture that fails to translate into meaningful change in workers’ lives. The answer will depend on political will, administrative capacity, judicial interpretation, and the continued mobilization of workers themselves demanding that the laws on paper become reality on the ground.

References

[1] Ministry of Labour and Employment. (2025). S.O. 5319(E) – Code on Social Security, 2020 Notification. Government of India. Retrieved from https://labour.gov.in/sites/default/files/ss_code_gazette.pdf 

[2] Labour Review. (2025). Beyond Welfare in India’s Gig Sector. Retrieved from https://labourreview.org/beyond-welfare/ 

[3] Parliament of India. (2020). The Code on Social Security Act, 2020 (Act No. 36 of 2020). India Code. Retrieved from https://www.indiacode.nic.in/handle/123456789/16823 

[4] Business Standard. (2025). From gig workers to factories: What India’s new labour codes really mean. Retrieved from https://www.business-standard.com/economy/news/labour-codes-india-worker-rights-gig-workers-wages-social-security-125112400388_1.html 

[5] The Week. (2025). No more job safety anxiety: How India’s new social security law reforms help gig workers, contract employees. Retrieved from https://www.theweek.in/news/biz-tech/2025/11/22/no-more-job-safety-anxiety-how-india-s-new-social-security-law-reforms-help-gig-workers-contract-employees.html 

[6] Government of Rajasthan. (2023). The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023. PRS Legislative Research. Retrieved from https://prsindia.org/files/bills_acts/acts_states/rajasthan/2023/Act29of2023Rajasthan.pdf 

[7] PRS Legislative Research. (2025). The Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2025. Retrieved from https://prsindia.org/bills/states/the-karnataka-platform-based-gig-workers-social-security-and-welfare-bill-2025 

[8] Supreme Court Observer. (2022). Gig Workers’ Access to Social Security – The Indian Federation of App Based Transport Workers v. Union of India. Retrieved from https://www.scobserver.in/cases/gig-workers-access-to-social-security-the-indian-federation-of-app-based-transport-workers-ifat-v-union-of-india/ 

[9] Economic and Political Weekly. (2024). Gig Workers under the POSH Act. Retrieved from https://www.epw.in/journal/2024/42/law-and-society/gig-workers-under-posh-act.html