India has legally recognized millions of gig and platform workers through its new labor regulations, representing a significant moment for the nation’s delivery, ride-hailing, and e-commerce workforce. However, with benefits still uncertain and platforms starting to evaluate their responsibilities, social security access is still distant.
This recognition arises from the Social Security Code — one of four labor laws that the Indian government enacted on Friday — over five years after parliament initially approved them in 2020. This is the only component of the new framework addressing gig and platform workers, as the other three codes — covering wages, industrial relations, and workplace safety — do not offer minimum pay, job security, or guaranteed working conditions to this rapidly growing workforce.
India possesses one of the world’s largest and fastest-expanding gig economies, with industry estimates indicating that over 12 million individuals deliver food, operate ride-hailing services, sort e-commerce shipments, and provide various on-demand services for digital platforms. This sector has emerged as a crucial employment source, especially for young and migrant workers excluded from formal job markets, and is anticipated to grow further as companies expand their logistics, retail, and hyperlocal delivery operations.
Companies ranging from Amazon and Walmart-owned Flipkart to Indian rapid-delivery apps like Swiggy, Eternal’s Blinkit, and Zepto, alongside ride-hailing companies such as Uber, Ola, and Rapido, depend on gig workers to sustain their operations in India — the world’s second-largest market for internet and smartphones, after China. Despite fueling some of India’s most valuable tech businesses, most gig workers lack conventional labor protections and access to fundamental social security.
The newly enacted labor regulations aim to rectify this by legally defining gig and platform workers and mandating aggregators, such as food-delivery and ride-hailing platforms, to allocate 1–2% of their annual revenue (capped at 5% of payments to these workers) to a government-managed social security fund. However, details remain vague: the precise benefits to be offered, how workers can access them, the tracking of contributions across platforms, and the commencement of payouts are all unclear. This raises concerns that significant protections may take years to materialize.
The Social Security Code establishes a legal basis for gig workers to be included in programs such as the Employees’ State Insurance, the provident fund, and government-backed insurance. However, the specifics of these benefits — including eligibility, contribution amounts, and distribution methods — are still unclear and will depend on future regulations and scheme announcements.
A crucial element of the framework is the establishment of Social Security Boards at both central and state levels. These boards are tasked with creating and managing welfare programs for gig and platform workers. According to the Code, the central board must include five representatives from both gig and platform workers and aggregators, all appointed by the government, alongside senior officials, experts, and state representatives. Nevertheless, there is limited clarity on decision-making processes, the actual influence of worker representatives, and the ultimate control over funding and benefit distribution decisions.
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“We must wait to see the government’s precise intentions regarding the implementation of the four Codes, and its objectives for gig workers,” stated Balaji Parthasarathy, a professor at IIIT Bangalore and the lead researcher for the Fairwork India project. “We also need to observe how the states interpret this on the ground.”
Parthasarathy pointed out that because labor policy in India is a joint responsibility of the federal and state governments — as listed in the “concurrent list” of the Indian Constitution — state governments are responsible for developing, notifying, and managing many schemes required to make the Social Security Code functional for gig workers.
This raises the potential for inconsistent access, with some states rapidly establishing social security boards and implementing mechanisms, while others delay or deprioritize these efforts due to political or financial limitations. Recent instances — such as Rajasthan’s delayed legislation after its passage in 2023 and Karnataka’s Gig Workers Act, implemented soon after state assembly approval — emphasize that worker protections may ultimately depend more on their location than the law itself.
Platform companies have publicly embraced the reform but are still largely assessing its implications. An Amazon India spokesperson informed TechCrunch that the company supports the Indian government’s aim behind the labor reform and is evaluating necessary changes. A Zepto spokesperson stated that the company welcomes the new labor codes as “a significant step toward clearer, simpler rules that protect workers while supporting ease of doing business,” adding that these changes will help bolster social security for its delivery partners without compromising the flexibility essential for quick-commerce operations.
Food delivery firm Eternal, previously Zomato, stated in a stock exchange filing that the Social Security Code represents progress toward more standardized rules and that it anticipates no significant financial impact on its long-term business.
However, Aprajita Rana, a partner at the corporate law firm AZB & Partners, noted that the change “will naturally have a financial impact” on India’s e-commerce sector, as worker contributions are now being formalized. It will also introduce new compliance responsibilities, requiring companies to register all workers in their networks with the government fund, determine associations of individuals with multiple aggregators to prevent duplicate benefits, and establish internal grievance processes.
“While the law is well-intentioned, India’s gig worker structures are quite innovative, and practical compliance challenges will arise as the law is enforced,” Rana told TechCrunch.
One of the major obstacles for gig workers seeking benefits under the new law will be registering on the Indian government’s E-Shram portal, launched in 2021 as a national database for unorganized workers. As of the end of August, the portal had registered over 300,000 platform workers, despite government estimates of approximately 10 million gig workers in India. Trade unions, including the Indian Federation of App-Based Transport Workers (IFAT), which has over 70,000 members, are assisting gig workers in enrolling to access these benefits.
Ambika Tandon, a PhD candidate at the University of Cambridge and an affiliate of the national trade union Centre of Indian Trade Unions (CITU), suggested that registering on the portal could result in lost earnings for gig workers, as they would need to take time off to complete the registration.
“These workers labor for 16 hours daily,” she told TechCrunch. “They lack the time to register themselves on the government portal.”
CITU is also among the ten major Indian trade unions advocating for the withdrawal of the new labor laws, ahead of planned nationwide protests on Wednesday.
Tandon noted that the advantages of registering on the E-Shram portal are not compelling for many gig workers, because the law fails to address more pressing issues such as unstable earnings, account suspensions, and abrupt account terminations — concerns that workers prioritize over insurance or provident fund benefits.
Trade unions frequently organize strikes to pressure platforms into directly addressing these issues. However, such actions can disrupt all parties, including consumers, and further endanger workers, who are unpaid during strikes and risk termination for participation.
“While the social security regulations are now in place, we are requesting a minimum wage and an employer–employee relationship for gig and platform workers, which the government has yet to establish,” stated Shaik Salauddin, the founding president of the Telangana Gig and Platform Workers Union (TGPWU), representing over 10,000 members in Telangana, and the national general secretary of IFAT. “We urge the government to gather data from aggregators and secure their financial contributions to initiate benefit provision to workers.”
A broader discussion exists regarding whether gig workers should be classified as employees — an issue not addressed by the new labor laws. The Social Security Code identifies gig and platform workers as a distinct category, rather than extending them the rights and protections associated with employee status. Conversely, courts and regulators in markets such as the U.K., Spain, and New Zealand have shifted toward recognizing platform workers as employees or “workers,” thereby entitling them to minimum wages, paid leave, and other benefits. In certain U.S. jurisdictions, regulators and courts have advocated for treating platform workers as employees or similarly protected workers, although numerous ride-hail and delivery drivers remain classified as independent contractors.
“Through this law, the Indian government has resolved this debate by stating that gig workers do not fall under the scope of employment or other protections,” Tandon explained.
The Indian labor ministry has not responded to requests for comments.
