Indian government approves new social security code for gig economy workers, requiring enterprises to contribute to a separate fund, marking a significant shift for platforms like Swiggy, Uber, Ola, and Zomato, writes Ravindra K Sharma
The draft Bill proposes that gig workers be eligible for a range of benefits, including life and disability cover, health and maternity benefits, old-age protection, and more. For the first time, they will also be covered by the Employees’ State Insurance Corporation, offering a safety net typically reserved for traditional employees.
Gig economy workers, who often face unstable incomes and unsafe working conditions, will now have legal access to basic protections, as the new code includes provisions for insurance benefits and other welfare schemes. This comes after years of advocacy for greater worker rights within this sector, where workers are classified as “partners” rather than employees, limiting their access to protections like the employees’ provident fund.
The new social security code will streamline existing labor laws and provide a more inclusive framework for India’s vast unorganized workforce. The code mandates that gig economy platforms contribute up to 2% of their annual turnover to the newly established social security fund. This proposal is in line with recommendations made by the Parliamentary Standing Committee on Labour, who first examined these changes in 2019. With this move, India is taking an important step toward securing the rights of millions of gig workers, who have often fallen through the cracks of traditional labor laws.
Gig Economy in India: A Snapshot
Number of Gig Workers: Estimated 77 million (2025)
Top Sectors
Ride-hailing (Uber, Ola)
Food delivery (Swiggy, Zomato)
Freelancing (Writing, Design, Tech)
Workforce Composition
50% Urban areas
30% Rural areas
20% Women workers
Gig Workers’ Key Challenges
Lack of Job Security: No formal employer-employee relationship.
No Health Benefits: Limited access to health insurance or maternity benefits.
Income Instability: Earnings often fluctuate based on demand and company policies.
Unsafe Working Conditions: Long hours, unpredictable risks.
Key Features of the New Social Security Code for Gig Workers
Eligibility for Benefits: Health, maternity, disability, and old-age benefits.
Coverage by ESI: Workers will now be covered under the Employees’ State Insurance Corporation.
Employer Contributions: Platforms to contribute up to 2% of annual turnover to a social security fund.
Gig Economy Companies in India
Ride-Hailing: Uber, Ola
Food Delivery
Swiggy, Zomato
Freelance Platforms
Upwork, Freelancer
Other Platforms
UrbanClap (home services)
Blinkit (grocery deliveries)
Financial Impact of Gig Economy in India
Contribution to GDP: Over $40 billion (2024)
Revenue from Gig Platforms: Expected to reach $10 billion in the next 3 years.
Number of Gig Economy Companies: Over 500 platforms operating nationwide.
