India has recently made a significant step towards granting legal status to millions of gig and platform workers under its newly implemented labor laws. This move marks a milestone for the country’s delivery, ride-hailing, and e-commerce workforce. However, while the Code on Social Security has recognized this rapidly expanding sector, the benefits for workers still remain unclear, and platforms are just beginning to assess their obligations. As a result, access to social security remains out of reach for many in this workforce.
India boasts one of the largest and fastest-growing gig economies globally, with industry estimates suggesting that over 12 million people are engaged in delivering food, driving ride-hailing cabs, sorting e-commerce packages, and providing other on-demand services for digital platforms. This sector has become a vital source of employment, particularly for young and migrant workers who may face challenges in accessing formal job markets. As companies continue to scale their logistics, retail, and hyperlocal delivery operations, the gig economy is expected to expand further.
Major companies such as Amazon, Flipkart, Swiggy, Blinkit, Zepto, Uber, Ola, and Rapido rely heavily on gig workers to run their businesses in India. Despite the crucial role these workers play in powering some of the country’s most valuable tech businesses, they often operate outside traditional labor protections and lack access to basic social security.
The newly implemented labor laws aim to change this by defining gig and platform workers in statute and requiring aggregators to contribute a percentage of their annual revenue to a government-managed social security fund. However, the specific benefits to be offered, how workers will access them, and how contributions will be tracked across multiple platforms remain unclear. This lack of clarity raises concerns that meaningful protections may take years to materialize.
One of the key provisions of the Code on Social Security is the creation of Social Security Boards at both the central and state levels. These boards are tasked with designing and overseeing welfare schemes for gig and platform workers. While the central board includes representatives of both workers and aggregators, questions remain about decision-making processes and the ultimate control over funding and benefit delivery.
Platform companies have generally welcomed the reform but are still evaluating its implications. Amazon India, Zepto, and Eternal (formerly Zomato) have expressed support for the new labor codes, acknowledging the importance of clearer rules that protect workers while supporting business operations. However, there are concerns about the financial impact on the e-commerce sector and the compliance obligations that companies will now face.
One of the challenges for gig workers seeking benefits under the new law is registering on the government’s E-Shram portal, which serves as a national database of unorganized workers. Trade unions are actively working to help gig workers enroll on the portal to access the benefits provided under the Code on Social Security. However, concerns remain about lost wages and practical challenges in compliance.
The broader debate over whether gig workers should be treated as employees continues, with the Indian government defining them as a separate category under the Social Security Code. This stance differs from approaches taken in other markets where platform workers are increasingly recognized as employees entitled to certain rights and protections.
Overall, while the new labor laws represent a significant step towards formalizing the status of gig workers in India, there are still many challenges and uncertainties to address. The full impact of these reforms on workers, platforms, and the broader economy will become clearer as implementation progresses.
