Small but significant win for gig workers with new draft social security bill

The Union Government’s release of draft Social Security Rules under the Code on Social Security, 2020 marks a significant step in India’s labour reform agenda, extending formal welfare coverage to millions of gig and platform workers for the first time. The move is part of the government’s implementation of the four new labour codes , designed to modernise labour laws, improve worker safety and social protection, while also promoting ease of doing business.

Welcoming the announcement, Aam Aadmi Party Rajya Sabha MP Raghav Chadha described the draft rules as an important acknowledgment of the contribution made by gig workers and delivery partners to India’s economy. He said the rules represent the first step towards recognition, protection and dignity for workers who have long remained outside the formal labour framework. While acknowledging that platforms had often failed to adequately address worker concerns, Chadha said the government’s move showed that the voices of gig workers had been heard. He termed the development “a small win, but an important win” for the sector.

Gig workers include delivery partners, ride hailing drivers, logistics workers and other app based service providers who work through digital platforms such as food delivery, quick commerce and mobility apps. Unlike traditional employees, they do not operate under a fixed employer employee relationship. Their work is typically task based, flexible and spread across multiple platforms, but without assured wages, paid leave, provident fund benefits or employer backed insurance, despite working long hours and often under demanding conditions.

Government estimates, supported by the Economic Survey 2024-25 and government think‑tank NITI Aayog’s analysis, show that around 7.7 million workers were part of India’s gig and platform workforce in 2020-21 , constituting about 2.6% of the non‑agricultural workforce. This figure is projected to grow sharply to nearly 23.5 million by 2029-30 , forming around 6.7% of non‑agricultural employment as digital services, e‑commerce and on‑demand delivery continue to expand. The rapid growth has heightened concerns around the absence of social security for a workforce that now forms a critical pillar of urban and semi‑urban services.

The draft Social Security Rules seek to address this gap by laying down eligibility norms for welfare coverage. Gig workers who meet minimum engagement thresholds with one or more platforms in a financial year will be eligible for benefits such as life and disability cover, accident insurance, health and maternity benefits, and old age protection . The rules also mandate the creation of a Social Security Fund to finance these welfare measures.

Funding for the Social Security Fund will come from multiple sources. Digital platforms classified as aggregators will be required to contribute a portion of their annual turnover, subject to a cap linked to payments made to gig workers. Government contributions and other permissible sources, including corporate social responsibility funds, may also supplement the pool.

Access to benefits will be enabled through the e Shram portal , the national database for unorganised workers, which provides a Universal Account Number and ensures portability of benefits across states and platforms.

While worker groups and labour advocates have welcomed the draft rules as a long overdue reform, some platform companies have expressed concerns during stakeholder consultations about compliance costs and implementation clarity, particularly around contribution requirements and eligibility thresholds. Industry representatives have sought clearer guidelines to ensure worker protection measures do not disrupt platform viability or consumer pricing.

Overall, the new Social Security Rules underline the government’s attempt to align labour regulation with the realities of a platform driven economy, balancing worker welfare, dignity and safety with business flexibility under India’s restructured labour law framework.