India’s gig workers win legal status, but access to social security remains elusive

India's new labor laws recognize gig workers, but the path to social security is fraught with uncertainty.

**India has officially recognized millions of gig workers under new labor laws, but social security remains a distant goal.** The Code on Social Security, effective from November 2025, aims to provide a legal framework for gig workers, yet the specifics of benefits and access are still unclear. This recognition comes over five years after the laws were first passed, highlighting a significant shift for the country's rapidly growing gig economy, which employs over 12 million people across various sectors. The new laws are intended to address the lack of protections that gig workers have faced, as many have operated without minimum earnings or employment rights. However, the implementation of these laws will be crucial in determining whether gig workers will actually benefit from the promised social security measures.

Legal Framework Established

The newly implemented Code on Social Security defines gig and platform workers, mandating that companies contribute 1-2% of their annual revenue to a government-managed social security fund. This is a significant step towards formalizing the gig economy, as it is the only one among four new labor codes that addresses the needs of gig workers. However, the exact benefits and how they will be accessed remain ambiguous. Many gig workers still lack minimum earnings or employment protections, which raises concerns about their financial security and overall well-being. The law's effectiveness will depend on how well it is implemented and whether it can truly provide the necessary support for these workers.

Gig Economy's Rapid Growth

India's gig economy is one of the largest globally, with over 12 million individuals engaged in food delivery, ride-hailing, and e-commerce. This sector has become a vital employment source, particularly for young and migrant workers who often struggle to find stable jobs in the formal economy. As companies like Amazon, Uber, and local apps like Swiggy increasingly rely on gig workers, the need for formal protections has never been more pressing. The rapid growth of this sector highlights the importance of establishing a legal framework that can support workers and ensure they receive fair treatment and benefits. Without such measures, many gig workers may continue to face uncertainty in their employment conditions.

Implementation Challenges Ahead

While the new laws are a step forward, practical challenges loom. The establishment of Social Security Boards at central and state levels is crucial for designing welfare schemes. These boards will be responsible for overseeing the implementation of the Code on Social Security and ensuring that gig workers receive the benefits they are entitled to. However, the effectiveness of these boards will depend on state governments' willingness to implement the laws. This could lead to potential disparities in access to benefits across different regions, as some states may prioritize the establishment of these boards while others may lag behind. The success of the new framework will largely hinge on how effectively it is executed at the local level.

Corporate Response and Compliance

Major companies have welcomed the reforms but are still assessing their implications. Amazon and Zepto have expressed support for the changes, emphasizing the need for clearer rules. However, compliance will require significant adjustments, including ensuring all gig workers are registered and managing contributions to the social security fund. Companies will need to develop new systems to track worker contributions and benefits, which may involve additional costs and administrative burdens. As these companies navigate the new landscape, their responses will be critical in shaping the future of gig work in India and determining how effectively workers can access the protections they need.

Registration Hurdles for Workers

One of the biggest obstacles for gig workers is registering on the E-Shram portal, a national database for unorganized workers. Despite the government's estimate of around 10 million gig workers, only 300,000 have registered. This low registration rate highlights the challenges workers face in accessing the benefits they are entitled to. Trade unions are actively working to assist workers in this process, but concerns about lost wages during registration persist. Many gig workers rely on their daily earnings, and taking time off to register could lead to financial strain. Addressing these registration hurdles will be essential to ensure that gig workers can fully benefit from the new labor laws.

Why it matters

Legal recognition could improve working conditions for millions of gig workers.
Establishing a social security framework is crucial for worker protection.
The gig economy is a significant part of India's employment landscape.
Implementation will vary by state, affecting access to benefits.
Corporate compliance will reshape the gig economy's operational landscape.

Key numbers

12 million gig workers in India
1-2% revenue contribution required from companies
300,000 platform workers registered on E-Shram portal

Context

The recognition of gig workers in India comes as part of a broader effort to modernize labor laws and provide protections for a workforce that has largely operated outside traditional employment frameworks. The gig economy's growth has outpaced regulatory measures, prompting the need for legal recognition and social security.

India’s gig workers win legal status, but access to social security remains elusive