India’s gig economy has grown rapidly in recent years, creating flexible work opportunities for millions whether delivering food, driving passengers, freelancing, or working on digital platforms. While this kind of work gives people the freedom to choose when and how they work, it often comes with a downside, gig workers usually miss out on the protections, benefits, and security that come with regular jobs.
Recognizing this gap, the Indian government has taken significant steps to provide social security for gig workers, including legal frameworks, welfare schemes, and state-level initiatives. Ensuring access to healthcare, accident insurance, pension, and other social benefits is now considered essential not only for the well-being of gig workers but also for promoting inclusive and sustainable economic growth.
What do you Mean by the Term Gig Worker?
A gig worker is an individual who performs work on a short-term or temporary basis, usually outside the traditional employer-employee framework.
Examples include app-based delivery riders, freelance writers, tutors, and drivers working on platforms like Swiggy, Zomato, or Uber. The gig economy is flexible, allowing workers to choose their work hours, location, and assignments, but it also comes with challenges like job insecurity, inconsistent income, and lack of social security.
According to a 2022 NITI Aayog report, India is expected to have around 23.5 million gig workers by 2029-30, highlighting the urgent need for protective policies and welfare measures.
Why is Social Security Needed for Gig Workers?
The reasons why social security is needed for gig workers are as follows:
1. Job Insecurity and Gig Workers
Gig workers face frequent termination or blacklisting without proper notice or hearing. Unlike regular employees, they lack protection against sudden loss of income, making unemployment insurance and financial safety nets crucial.
2. Importance of Health Insurance
Many gig workers lack access to employer-sponsored health coverage. Accidents, illness, or hospitalization can result in catastrophic financial losses. Social security measures such as health insurance and access to schemes like Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) help mitigate this risk.
3. Social Security and Long-term Financial Stability
Without retirement savings or pension schemes, gig workers struggle with post-retirement financial security. Programs providing old-age benefits or pension schemes are vital for their future.
4. Social Security and a Level Playing Field
Traditional labor protections, minimum wages, and benefits are absent in the gig economy. Providing social security ensures fair working conditions, protecting workers from exploitation.
What Framework Exists at the National Level?
To protect and support gig workers, the Indian government has introduced several initiatives under the Code on Social Security, 2020 and related programs. These measures aim to formalize gig work, provide access to social security benefits, and ensure financial and healthcare protection for workers in the unorganized sector.
| Initiative | Description | Key Features |
| Code on Social Security, 2020 | Landmark legislation recognizing gig and platform workers for the first time | – Defines gig and platform workers, distinguishing them from traditional employees – Provides life and disability cover, accident insurance, health, maternity benefits, and old-age protection – Empowers the government to establish a National Social Security Board to recommend and monitor schemes |
| e-Shram Portal Registration | Formal registration of gig workers for recognition and benefit access | – Creates a national database of unorganized sector workers – Enables streamlined delivery of social security benefits |
| Unique Identity Cards | Issuance of ID cards for gig workers | – Announced in Union Budget 2025-26 – Helps in formalizing employment records and benefit delivery across platforms |
| Access to Healthcare | Healthcare coverage under government schemes | – Gig workers can avail hospitalization and medical benefits through Ayushman Bharat-PMJAY – Ensures protection against unexpected medical expenses |
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How are States Acting to Support Gig Workers?
The details of how the states are working to support gig workers are as follows:
1. Karnataka’s Platform-based Gig Workers (Social Security and Welfare) Bill
Karnataka became the second state after Rajasthan to introduce legislation for gig workers. The Bill proposes:
- Creation of a Welfare Board: Comprising labor officials, aggregator representatives, gig workers, and civil society members.
- Grievance Redressal: A two-level system to address complaints and ensure transparency in automated monitoring systems.
- Timely Payment: Aggregators must pay workers at least weekly and provide reasons for deductions.
- Unique ID Registration: Workers can receive an ID applicable across all platforms.
- Autonomy & Contractual Rights: Workers cannot be terminated without valid notice; they can resist overwork.
- Work Safety: Aggregators are required to maintain a safe working environment.
- Welfare Fund: Funded by a welfare fee from aggregators, along with state and worker contributions.
- Penalties: Rs 5,000 minimum, extendable to Rs 1 lakh for violations.
2. Other State-Level Initiatives
States like Telangana and Rajasthan have introduced draft bills or acts to provide social security benefits and welfare support for gig workers.
What Challenges Exist in Providing Social Security to Gig Workers?
While social security for gig workers is essential, implementing it comes with several challenges. The nature of gig work flexible, platform-based, and often self-employed makes designing and delivering benefits more complex. Additionally, issues like funding, data coordination, and lack of awareness among workers add to the difficulty of ensuring comprehensive coverage.
| Challenge | Description | Key Points |
| Classification and Flexibility | Gig work’s inherent flexibility makes it difficult to design benefits that fit diverse work schedules and types | – Workers choose when, where, and how they work – Benefits must accommodate varying hours and multiple engagements |
| Funding and Cost Distribution | Most gig workers are self-employed, unlike traditional employees, complicating funding | – Traditional social security relies on employer contributions – Identifying appropriate funding mechanisms for gig workers is challenging |
| Coordination and Data Sharing | Gig workers often work across multiple platforms | – Effective coordination between government agencies, financial institutions, and platforms is needed – Ensures accurate assessment of earnings and eligibility for benefits |
| Education and Awareness | Many gig workers are unaware of their rights and available schemes | – Promoting awareness and training is crucial – Helps workers effectively access social security benefits |
What Government Initiatives are Targeted at Gig Workers?
The Indian government has introduced several initiatives to support gig workers and ensure their social and financial security. These measures aim to formalize gig work, provide access to healthcare, pensions, and accident coverage, and create a safety net for workers in the unorganized sector.
- Legal Framework: Code on Social Security, 2020 requires contributions to a government-managed social security fund; Code on Wages, 2019 ensures minimum and floor wages for gig and unorganized workers.
- Health and Accident Coverage: Guidelines provide ex-gratia payments for accidental death or disability for e-Shram registered workers, similar to PM Suraksha Bima Yojana.
- Welfare Funds: Central and state governments, along with platform companies and workers, contribute to welfare funds that provide financial support, health coverage, pensions, and other benefits.
How can Social Security be Ensured for Gig Workers?
To make social security effective for gig workers, both the government and platform companies need to take proactive steps.
| Step | Details |
| Implementing the Code on Social Security, 2020 | State governments should frame rules and establish boards to ensure timely implementation of social security measures for gig workers. |
| Expanding Employer Responsibilities | Gig platforms should share responsibility for worker welfare by offering benefits similar to those of regular employees. |
| Education and Training Programs | Skill development programs help gig workers improve their abilities, increase earnings, and gain financial independence. |
| Government Collaboration | Coordination between government agencies, gig platforms, and labor organizations is essential for fair and transparent delivery of social security benefits. |
| Adopting International Models | UK Model: Categorizes gig workers as “workers” with minimum wage, paid holidays, retirement plans, and health insurance. Indonesia Model: Provides accident, health, and death insurance for gig workers. |
| Women Empowerment | Build physical and social infrastructure to support women in the gig workforce, promoting inclusivity, safety, and equity. |
Key Takeaways
| Aspect | Details |
| Legal Framework | Code on Social Security 2020 defines gig workers and provides for social security benefits |
| Registration | e-Shram portal registration and unique ID cards for gig workers |
| Healthcare | Access to Ayushman Bharat-PMJAY and ex-gratia accidental death/disability cover |
| State Initiatives | Karnataka, Rajasthan, Telangana introduced welfare boards and funds |
| Challenges | Classification, flexible work, funding, data sharing, awareness |
| Government Measures | Social security funds, minimum wages under Code on Wages 2019, grievance mechanisms |
| Employer Responsibility | Aggregators required to pay timely, maintain safe environment, respect contractual rights |
| International Best Practices | UK: Minimum wage, paid holidays, retirement plan; Indonesia: accident & health insurance |
Answer Key
Questions Based on Social Security for Gig Workers
- Which Code defines gig workers in India?
a) Code on Wages 2019
b) Code on Social Security 2020
c) Industrial Disputes Act 1947
d) Employee Provident Fund Act 1952
e) Minimum Wages Act 1948 - Which portal is used for registering gig workers in India?
a) PMJAY Portal
b) e-Shram Portal
c) UMANG
d) DigiLocker
e) NSDC Portal - What is the purpose of unique ID cards for gig workers?
a) Tax calculation
b) Access benefits across platforms
c) Driver license replacement
d) Pension only
e) None of the above - Which state introduced the Platform-based Gig Workers Welfare Board?
a) Rajasthan
b) Karnataka
c) Telangana
d) Maharashtra
e) Gujarat - Who manages the National Social Security Board?
a) State Governments
b) Central Government
c) Private aggregators
d) NITI Aayog
e) Ministry of Finance - What is the key challenge in providing social security for gig workers?
a) Lack of jobs
b) Flexible work patterns
c) Urban migration
d) Technology adoption
e) Skill shortage - Which scheme provides healthcare benefits to gig workers?
a) PMJJBY
b) PMSBY
c) Ayushman Bharat-PMJAY
d) APY
e) NPS - What is the minimum notice period for termination under Karnataka Gig Workers Bill?
a) 7 days
b) 14 days
c) 30 days
d) 60 days
e) No notice required - Which international country provides accident, health, and death insurance for gig workers?
a) UK
b) USA
c) Indonesia
d) Germany
e) Canada - Why is social security necessary for gig workers?
a) To improve income certainty
b) To increase taxation
c) To reduce flexible work
d) To promote startups
e) To restrict employment
Answer Key
| Q.No | Answer | Q.No | Answer |
| 1 | b | 6 | b |
| 2 | b | 7 | c |
| 3 | b | 8 | b |
| 4 | b | 9 | c |
| 5 | b | 10 | a |
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