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Gig and platform workers in India are now legally recognised, and have an avenue to social security benefits under the Code on Social Security, 2020, but are not considered as being employees in any traditional sense of the term to claim traditional labour benefits such as PF or gratuity. Also, see the nations where workers enjoy completely free healthcare. The framework will enable governments to develop life and disability cover schemes, accident insurance schemes, health and maternity benefits, old-age protection schemes and others, funded through contributions made via platforms and government funds. For in-depth stories and updates on worker protections, visit our Labour Rights coverage.
Legal Status and Definitions
- In 2020, the Code on Social Security formally gives meaning to the term gig worker and platform worker, which are not regarded as the regular employees but did receive the eligibility to the notified social security schemes.
- It is proposed to have a National Social Security Board to recommend and oversee welfare schemes of the unorganised, gig, and platform workers.
Key Social Security Provisions
- Some schemes include life / disability, accidents, health and maternity benefits, old age protection, and creches which should be communicated by the Centre or states and implemented through government schemes such as e-Shram.
- e-Shram registration provides workers with UAN and bridges them to welfare eligibility; tens of crores of unorganised workers are enrolled including gig workers, enhancing access to benefits.
Platform (Aggregator) Obligations
- Aggregators will be obliged to make a contribution towards a Social Security Fund to support gig workers of one to two percent of annual turnover (with a maximum of five percent of the sum paid to gig worker in the year), and with the same compliance and record keeping obligations.
- The platforms will be anticipated to support worker registration (Aadhaar-based) and keep record of earnings and liaise with authorities to deliver the scheme and audit.
What Rights Are Not Automatic
- Under the normal labour codes, gig workers have no default right to minimum wages, PF, gratuity or paid leaves unless certain state or central notifications have extended such protection on this type of workers.
- The employment status is also different to that of workman/employee and therefore protection on industrial relations is not automatic without specific laws or contracts.
Emerging State Actions
- States are operationalizing welfare: some include draft/state bills to enlist gig workers, impose welfare taxes on platforms, or create state Social Security/Welfare Funds (e.g., Telangana draft bill; some states are considering models).
- The national and state budgets and policy updates reflect expansions made like health coverage under Ayushman Bharat to registered gig workers and proposals to have universal social security under debate.
Practical Steps for Workers
Register on e-Sham so as to receive a UAN and remain eligible to receive notified benefits; maintain Aadhaar and mobile in order to gain KYC and access payouts.
Follow state-related welfare messages and messages on the insurance schemes, accidental covers, and maternity/health schemes funded by the Social Security Fund.
Keep earnings records and ride/order logs; these can be used to support under notified schemes earnings and claims calculations.
Concisely, the Indian legal system has now acknowledged the existence of gig workers and requires platforms to contribute to social security but complete equality with employee rights is not provided yet; the benefits are accessible under the condition of registration and the implementation of central/state plans in the years 2025 or further.
