New Delhi – In a landmark move aimed at providing basic protections to millions of workers in the burgeoning gig economy, India has formally extended its social security framework to include gig and platform workers. The initiative, spearheaded by the government’s notification of the Code on Social Security, will bring delivery workers, drivers, and other independent contractors associated with major platforms like Amazon, Flipkart, Swiggy, and Zomato under a formal welfare umbrella for the first time.
The Code on Social Security, 2020, defines ‘gig workers,’ ‘platform workers,’ and ‘aggregators,’ recognizing the non-traditional employment structures that characterize the modern workforce. A gig worker is defined as someone working outside the traditional employer-employee relationship, while a platform worker is a subset of the gig economy, specifically those working with companies like Amazon, Flipkart, Swiggy, and Zomato. An aggregator is defined as a digital intermediary connecting buyers and sellers of services.
At the heart of the new framework is the creation of a Social Security Fund, financed by contributions from the Central and state governments, corporate social responsibility initiatives, and fines collected. This fund will be used to finance a range of social security and welfare schemes, including life insurance, disability insurance, health and maternity benefits, and provident fund schemes.
A key component of the scheme requires aggregators like Amazon, Flipkart, Swiggy, and Zomato to contribute 1–2 percent of their annual turnover to the fund, with the total contribution capped at 5 percent of the amount payable to the workers. This financial commitment aims to ensure the sustainability of the social security programs.
“For years, the country’s gig workers subsidised its growth from the margins. Today, they step into the system,” said Rishi Agrawal, CEO and co-founder of Teamlease Regtech. “Millions of gig workers now have portable benefits, health coverage, and social security that enables mobility across states and jobs.” Agrawal also highlighted that gig workers will now have rights to mandatory appointment letters, accident insurance, and disability protection, alongside access to portable provident fund contributions and pension eligibility.
The Code also establishes a National Social Security Board to advise the Centre on framing and monitoring suitable schemes for different sections of unorganised workers, including gig and platform workers. The Centre may, from time to time, frame suitable social security schemes for these workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, and crèche facilities.
Notably, accidents occurring while travelling between home and workplace will now be treated as employment-related accidents, further expanding the scope of protection. To ensure workers can access benefits seamlessly, platforms will collaborate with the government to register all gig and platform workers using an Aadhaar-linked Universal Account Number, facilitating benefit portability across states.
According to Niti Aayog, India’s gig sector is projected to employ 23.5 million people by 2029-30. The new Code on Social Security represents a significant step towards addressing the lack of social security benefits for these workers, who often work long hours under challenging conditions as independent contractors.
