DELHI: The gig and platform economy in India is expanding at an unprecedented rate, driven by technological advancements and changing work dynamics. This sector, which includes freelancers, independent contractors, and on-demand workers engaged through digital platforms, is reshaping the country’s employment landscape. Unlike traditional employment, gig and platform workers operate outside formal employer-employee relationships, providing services ranging from ride-hailing and food delivery to specialised freelance work in technology, design, and consulting.
According to a NITI Aayog report published in June 2022, the number of gig and platform workers in India stood at 7.7 million in 2020-21 and is expected to rise to 23.5 million by 2029-30. The Ministry of Labour and Employment, in response to a question in the Rajya Sabha on March 27, 2025, stated that the government is taking steps to safeguard the interests of these workers by integrating social security measures and creating a regulatory framework.
The government has recognised gig and platform workers for the first time in the Code on Social Security, 2020, which provides a legal definition and mandates the formulation of suitable welfare measures. This includes life and disability cover, accident insurance, health and maternity benefits, and old-age protection. Additionally, the government has issued advisories to platform aggregators to register both themselves and their workers on the e-Shram portal, facilitating access to social security benefits.
To further strengthen social security provisions, the government has proposed registering gig workers on the e-Shram portal, issuing them identity cards, and extending health coverage under the Ayushman Bharat-Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY). The Budget 2025 announcement reaffirmed this commitment by proposing new initiatives for the sector.
Despite these measures, challenges persist. Gig workers often face issues such as lack of job security, low and fluctuating wages, and limited access to benefits like provident funds or employee insurance. The absence of a clear employer-employee relationship makes it difficult to enforce labour protections effectively. There have also been reports of worker exploitation, prompting calls for stronger regulations to ensure fair wages and better working conditions.
To address these concerns, the government is exploring policies that balance flexibility with protection. The establishment of a Social Security Fund under the Code on Social Security, 2020, is a step in this direction. Further collaboration with digital platforms, industry stakeholders, and worker unions is crucial to ensuring a sustainable and fair work environment in India’s evolving gig economy.
As India moves towards a more digital and flexible work environment, the gig and platform economy is set to play a crucial role in employment generation. However, sustained policy interventions and robust social security mechanisms will be essential to safeguard the rights and welfare of millions of gig workers who contribute significantly to the country’s economic growth.
The government said that for the first time, the definition of ‘gig workers’ and ‘platform workers’ and provisions related to the same have been provided in the Code on Social Security, 2020 which has been enacted by the Parliament.
As per the Code, the gig worker has been defined as a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.
The Code provides for framing of suitable social security measures for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc. Recognising the contribution of gig workers of online platforms, the Government in its Budget announcement proposed to register them on e-Shram portal, arrange for their identity cards and provide health care under Ayushman BharatPradhan Mantri Jan Aarogya Yojana (AB- PMJAY) health scheme.
