New “Gig Workers Act” to Force Platforms to Provide Social Security by March 2026

The Indian gig economy is on the verge of undergoing a historic change with the government completing the finalization of rules that will compel social welfare to the millions of workers. Under the Code on Social Security, major platforms will have the right obligation to offer a safety net by March 2026. The policy versions put forward suggest a certain eligibility standard: the worker should spend 90 (or 120) days with one aggregator or a total of 90 (or 120) days on various platforms to be eligible to receive the benefits. This is meant to stop the weakness of the partner workforce, whereby the businesses will be obligated to pay 1-2 percent of their annual turnover to a special welfare fund.

Mandating Social Security for Gig Workers

The core of this new legislation is the formalization of social security for gig workers, a benefit long denied to them under the guise of “independent contracting.” The ministry of labour and employment has stipulated that qualified employees will receive health insurance, maternity allowance and life cover. The government is also actively enrolling workers in the e-Shram portal in order to develop a single database. This initiative will make certain that the welfare infrastructure is in place and working prior to the start of the fiscal year 2026, which will close the gap between the corporate profits and the safety of the workers.

Read more: Gig Workers to Get Social Security? New Labour Codes Promise Benefits but Unions Remain Wary

Enhancing Platform Workers Rights

This “Gig Workers Act” fundamentally redefines platform workers rights by holding aggregators accountable. In addition to contributing money, the platforms should be able to exchange worker data electronically and be transparent in engagement terms. In case an aggregator does not update the worker-related information or does not provide the relevant welfare contributions, they will be penalized. This change in regulation recognizes that although the gig economy is characterized by flexibility, such flexibility cannot be done at the expense of fundamental human security. The legislation has been successful in balancing the scorecard so that as the digital platforms rise, the individuals that drive them do not remain behind.

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