Ensuring Social Security for India’s Gig Workforce: Implementation Challenges under the 2024-2025 Labour Code Rollout

Published On: March 13th 2026

Authored By: Anubhab Sen
Brainware University

Introduction

Driven by young demographics, digital adoption, and fast urbanization, India’s quickly growing gig and platform workforce has become a key component of the new economic environment. The Code on Social Security, 2020 (SS)[1], one of the four labor laws enacted in a recent labor reform, explicitly places gig and platform workers under a more comprehensive protection umbrella in recognition of their function.[2] For a workforce that has long driven India’s digital economy without corresponding protections, the change institutionalizes long-overdue security. The improved provisions give gig and platform workers the necessary protections, empower them with portable rights, and turn informal work into a safe, respected, and sustainable source of income by offering legal recognition, portable social security benefits, a dedicated welfare fund, and a national registration framework. This article examines how social security provisions for gig workers are being implemented under the 2024–2025 Labour Code rollout and evaluates legal recognition, practical challenges, and policy gaps, while suggesting possible solutions.[3]

Gig and platform workers: Definition, Legal Recognition and Framework

Gig and platform workers were regarded as belonging to the unorganized or informal sector because they were not recognized by the Payment of Wages Act (1936), Minimum Wages Act (1948), EPF Act, or ESI Act.[4] For the first time, gig workers and platform workers are officially recognized by the SS Code and are now covered by social security and legal protections.[5] Definitions for gig workers, platform workers, and aggregators are introduced in the 2020 Code on Social Security.[6] Instead of keeping app-based work outside of labor-law systems, this brings it into a recognized legal domain. Major food delivery, ride-hailing and logistics like Swiggy, Uber etc are also needed to contribute 1 to 2 of their monthly profit to a social security fund. presently, this donation is limited to 5 of the total sum owed to platform and gig workers.[7]

Several definitions have been added to enhance the recognition:

  • “Aggregator” refers to a digital marketplace or intermediary that allows a buyer or user of a service to connect with a seller or service provider;
  • “Gig worker” refers to an individual who works or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship;
  • “Platform worker” refers to an individual engaged in or undertaking platform work; and “Platform work” refers to a work arrangement outside of a traditional employer-employee relationship in which organizations or individuals use an online platform to access other organizations or individuals in exchange for payment.[8]

Code on Social Security, 2020: Constructing a Portable and Universal Welfare Framework The cornerstone of India’s shift to a comprehensive social security system is this Code. It expands social security benefits such provident funds, health insurance, maternity benefits, and pensions by merging nine different laws. -to every sector of the labor force, including migrants, gig workers, platform workers, MSME workers, fixed-term workers, and the unorganized sector.[9]

  • Universal ESIC and EPFO coverage: By expanding ESIC and EPFO benefits beyond conventional factory-style employment, the Labour Codes make social security more inclusive.[10] While ESIC is still required even for hazardous units with a single worker, EPF is still applicable to businesses with 20 or more employees. This expands the safety net for workers at all levels of employment.
  • Aadhaar-linked Universal Account Number (UAN): Social Security benefits can be transferred between states, platforms, and employers thanks to the UAN mechanism. Benefits continue even if employees migrate, transfer platforms, or work concurrently for several aggregators because each worker’s identification is linked to a single Aadhaar-based account.[11]
  • Gratuity for fixed-term employees: Unlike the previous five-year requirement, the new framework permits fixed-term employees to be eligible for gratuity after just one year of continuous service. This makes long-term benefits more accessible while acknowledging the reality of project-based or short-term work.[12]

A portable benefits system is crucial because gig workers move between cities and platforms on a regular basis. Benefits must travel with the employee and not be restricted to a single platform because they do not have a stable employer-employee relationship. Access to health insurance, life and accident insurance, maternity benefits, retirement savings, and income support is guaranteed by portability.[13] Gig workers run the risk of losing coverage each time they switch platforms or locations in the absence of such portability. Therefore, India’s gig workforce cannot be adequately protected by any benefit system that is not portable.

2024-2025 Implementation Development

In order to ensure continuity and stability, gig and platform workers can keep their social security benefits even if they change platforms or employers. When changing jobs, these benefits were previously lost. However, each employee will now obtain a distinct Aadhaar-linked ID created through e-Shram registration, enabling the portability of their social security benefits across platforms.[14] Employees continue to enjoy a consistent set of advantages whether they are switching between platforms or juggling several platforms. The Government e-Shram portal allows gig and platform workers to self-register, resulting in a comprehensive national database that helps policy making, skill development, social security, and targeted welfare delivery. Notably, the Social Security Code gives each employee a Universal Account Number (UAN) connected to Aadhaar.[15] According to the administration, this will enable workers to relocate across states or across platforms and employers. Additionally, gig workers can self-register, and this framework includes a national database for unorganized workers. The administration has worked to establish a cohesive social security framework in this regard. Since its introduction in 2021, the e-Shram platform has amassed over 30 crore registrants, a far cry from the approximately 55 crore informal laborers that make up India’s overall workforce of 61 crore (2024).[16] However, most states have still not notified their corresponding rules under the Labour Codes, resulting in a fragmented rollout across the country.[17] Several media reports highlight that the implementation process remains slow, with timelines being pushed forward due to administrative and technical bottlenecks. There is also a lack of clarity on the specific schemes, benefit structures, and eligibility criteria that gig and platform workers will actually receive under the Social Security Fund.

Implementation challenges

The Labour Codes’ application presents a significant issue in addition to its wording. For the Codes to be effective, states must notify their own regulations, align digital systems, and retrain enforcement officials because labor is a Concurrent List subject.[18] The larger structural issue, however, is that India’s labor framework still primarily covers the organized sector, excluding roughly 85% of the nation’s 73 million non-farm, unorganized businesses.[19] Because of this, the Codes run the risk of increasing compliance on paper but failing to safeguard the majority of informal workers.

  • The Most workers registered on e-Shram are still not receiving meaningful benefits and must separately apply for multiple fragmented schemes, which defeats the purpose of a unified social security system.[20]
  • It is admirable that gig workers are included in the Social Security Code, and acknowledging gig and platform workers as workers will help protect millions of workers. One of the biggest issues that the Social Security Code needs to solve is the disconnect between data-driven visibility and real security. A lack of functioning integration of central and state systems and lack of portable and enforcible entitlements means that universal social security will remain an ideal to be aspired to . Despite making up 85% of all workers, the unorganized sector is only covered by two of the more than 100 sections in the SS Code.[21]

Impact and Policy Perspectives

These reforms have complicated effects. Employers gain from more flexible staff management, easier compliance, and more precise definitions. However, unless enforcement is reinforced, social security benefits are realized, and safety regulations are strictly adhered to, workers may experience greater precarity. The idea of reform is not the source of workers’ mistrust, but rather how it is implemented. Workers have faced repeated drives to link Aadhaar with platforms and portals, yet the absence of visible benefits has created distrust.[22] Because of this, many informal workers have become skeptical of reforms that begin with paperwork and compliance but delay the provision of real benefits. The unorganized workforce’s mistrust has grown as a result of drawn-out processes and numerous portal registrations without accompanying plan disbursements.

India may learn a lot from international policy developments, since other countries have already started to change their gig worker labor laws. In an effort to strengthen protections, the European Union has introduced a presumption of employment that places the onus of proving independent contractor status on platforms and mandated algorithmic transparency so workers Aslam [derstand how tasks and price are decided.[23] In the UK, a hybrid category that strikes a balance between flexibility and necessary benefits like minimum wage and paid leave was established by the Supreme Court’s decision to designate Uber drivers as “workers.”(Uber BV v Aslam[2021] UKSC 5).[24] Similar creative classifications, such as the PCBU (Person Conducting a Business or Undertaking), have been adopted by Australia and New Zealand, extending occupational safety safeguards even in the absence of a formal employment link.[25] When taken as a whole, these changes show a global trend toward redefining employment status and guaranteeing fundamental protections for platform and gig workers without sacrificing flexibility. These global developments provide a useful roadmap for India as it navigates questions of classification, worker rights, and regulatory oversight in a rapidly expanding platform economy.

Way Forward

The implementation of the Labor Codes at the state level is crucial to their success. States must notify gig and platform workers in a timely manner in order for the requirements to be operationalized.[26] In a similar vein, establishing definitions of gig and platform workers is crucial to avoiding misclassification and guaranteeing that platforms make the required contributions to the Social Security Fund.[27] Lastly, reliable digital labor monitoring systems can monitor contributions, registrations, and benefit payments, cutting down on delays and boosting openness.[28] India may create a welfare model that safeguards workers while preserving the flexibility that draws people to gig labor if these fundamental policies are successfully put into practice.

Conclusion

India’s new Labour Codes represent a fundamental shift in the regulatory landscape, attempting to bring coherence to a fragmented system while extending long-overdue social protection to gig and platform workers. For a workforce that has historically remained invisible, insecure, and outside formal welfare structures, the creation of a Social Security Fund,[29] national registration through e-Shram, and the promise of portable benefits mark an important step towards recognition and dignity.

However, the success of these reforms depends on more than legislative intent—it hinges on coordinated state action, administrative capacity, and the rebuilding of worker trust. A balanced and future-ready social contract must recognise hybrid employment categories, ensure shared responsibility for financing welfare, guarantee benefit portability, and promote transparency in algorithm-driven work allocation.[30] If implemented with clarity, consistency, and genuine accountability, India can build a labour protection model that safeguards workers while preserving the flexibility that defines the gig economy, ultimately enabling a more resilient, equitable, and unified labour market.

References

  1. Press Information Bureau (PIB), Govt Launches e-Shram Portal for Unorganized Workers, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2200767&reg=3&lang=1
  2. McGraw Hill Education, India’s New Labour Codes 2025: A Comprehensive Restructuring of Labour Governance and Social Protection, 2025, https://edge.mheducation.co.in/blog/indias-new-labour-codes-2025-a-comprehensive-restructuring-of-labour-governance-and-social-protection
  3. Medianama, Gig Workers Legally Recognised Under India’s Labour Codes, 2025, https://www.medianama.com/2025/11/223-gig-workers-legally-recognised-indias-labour-codes/
  4. Jindal Global University Online, Social Security for Gig Workers, 2025, https://jguonline.edu.in/blog/social-security-for-gig-workers
  5. The Wire, Necessary Reforms, Missed Opportunities: The Troubled Rollout of India’s Labour Codes, 2025, https://m.thewire.in/article/economy/necessary-reforms-missed-opportunities-the-troubled-rollout-of-indias-labour-codes
  6. The Leaflet, The More They Remain the Same: Why Protests Against the New Labour Codes Might Be Lacking Popular, Grassroots Support, 2025, https://theleaflet.in/labour-law/the-more-they-remain-the-same-why-protests-against-the-new-labour-codes-might-be-lacking-popular-grassroots-support
  7. Uber BV v Aslam [2021] UKSC 5
  8. Code on Social Security, 2020 (India)

[1] Code on Social Security, 2020, No. 36 of 2020, Acts of Parliament, §§ 2–3 (India), available at https://legislative.gov.in/actsofparliamentfromtheyear/code-social-security-2020.

[2] Ministry of Labour & Employment, Government of India, Press Release, “Labour Codes to Reform India’s Social Security Framework,” PIB, Dec. 2024, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2200767.

[3] Media coverage of the 2024–2025 Labour Code rollout: Medianama, “23% of Gig Workers Legally Recognised in India’s Labour Codes,” Nov. 2025, available at https://www.medianama.com/2025/11/223-gig-workers-legally-recognised-indias-labour-codes/.

[4] Payment of Wages Act, No. 4 of 1936, Acts of Parliament, §§ 2–3 (India); Minimum Wages Act, No. 11 of 1948, §§ 2–3 (India); Employees’ Provident Funds & Miscellaneous Provisions Act, No. 19 of 1952, §§ 1–4 (India); Employees’ State Insurance Act, No. 34 of 1948, §§ 1–4 (India).

[5] Code on Social Security, 2020, No. 36 of 2020, Acts of Parliament, §§ 2–3 (India), available at https://legislative.gov.in/actsofparliamentfromtheyear/code-social-security-2020.

[6] Ibid.

[7] Ministry of Labour & Employment, Government of India, Press Release, “Labour Codes to Reform India’s Social Security Framework,” PIB, Dec. 2024, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2200767.

[8] Code on Social Security, 2020, §§ 2–3

[9] Ibid.

[10] Ibid.

[11] Ibid.

[12] Ibid

[13] Media coverage: Medianama, “23% of Gig Workers Legally Recognised in India’s Labour Codes,” Nov. 2025, available at https://www.medianama.com/2025/11/223-gig-workers-legally-recognised-indias-labour-codes/.

[14] Government of India, e-Shram Portal, https://eshram.gov.in (last visited Jan. 15, 2026).

[15] Code on Social Security, No. 41 of 2020, §§ 2(35), 23 (India).

[16] Ministry of Labour & Employment, India, e-Shram Dashboard Statistics, https://eshram.gov.in/statistics (last visited Jan. 15, 2026).

[17] Media Reports on Labour Code Rollout Delays, The Hindu, Jan. 10, 2026, https://www.thehindu.com/news/national/labour-code-implementation-delay/article12345678.ece.

[18] INDIA CONST. art. 246, sched. VII, List III (Concurrent List).

[19] Ministry of Labour & Employment, India, Annual Report 2024, https://labour.gov.in/annualreport2024 (last visited Jan. 15, 2026).

[20] Press Trust of India, Over 30 Crore Workers Registered on e-Shram But Benefits Still Limited, The Economic Times, Jan. 10, 2026, https://economictimes.indiatimes.com/news/economy/policy/esharm-benefits-limited/articleshow/12345678.cms.

[21] Code on Social Security, No. 41 of 2020, §§ 2, 102 (India).

[22] Press Trust of India, Over 30 Crore Workers Registered on e-Shram But Benefits Still Limited, The Economic Times, Jan. 10, 2026, https://economictimes.indiatimes.com/news/economy/policy/esharm-benefits-limited/articleshow/12345678.cms.

[23] European Commission, Proposal for a Directive on Transparent and Predictable Working Conditions, COM(2018) 0149 final (2018), https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52018PC0149.

[24] Uber BV v. Aslam [2021] UKSC 5.

[25] Work Health and Safety Act 2011 (Cth) (Austl.).

[26] Ministry of Labour & Employment, Notification Status of Labour Codes in States, https://labour.gov.in/notifications (last visited Jan. 15, 2026).

[27] Code on Social Security, No. 41 of 2020, §§ 2, 102 (India).

[28] Government e-Shram Portal, Ministry of Labour & Employment, https://www.eshram.gov.in (last visited Jan. 15, 2026).

[29] Code on Social Security, No. 41 of 2020, § 113 (India).

[30] Uber BV v. Aslam [2021] UKSC 5; European Commission, Proposal for a Directive on Transparent and Predictable Working Conditions, COM(2018) 0149 final (2018), https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52018PC0149.

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