India has extended legal recognition to millions of gig and platform workers through recent labour-law reforms, formally classifying them within a dedicated category designed to open the door to social security schemes. Despite this milestone, key operational details remain unclear and access to benefits is still largely theoretical for many in the sector.
The reforms stem from the implementation of the Code on Social Security, which, for the first time, defines gig and platform workers as distinct from traditional employees or independent contractors. The law obliges platform-aggregator firms to contribute 1-2 % of their annual revenue (subject to a cap) into a government-managed fund earmarked for welfare schemes. However, this contribution scheme requires further regulatory updates – and the structure of benefits, eligibility criteria and delivery mechanisms are still pending notification.
For gig workers, the promise of formal access to provident funds, insurance coverage, and welfare boards offers a potential upgrade from the informal status that has characterised the sector. At the same time, substantial hurdles remain: many workers must first register via a government portal, aggregators must track cross-platform engagement, and state governments must operationalise their respective welfare boards – all of which creates scope for significant variation across states. Companies within India’s delivery, ride-hailing and e-commerce sectors say they are reviewing their obligations and compliance frameworks, though the cost impact has been noted as non-trivial.
The central unresolved issue is whether legal recognition will translate into meaningful social‐security access and protections, or remain largely symbolic. Without clear, consistent implementation across diverse states and platforms, many workers may continue to operate in precarious conditions despite being formally “recognised”. Looking ahead, the effectiveness of the reform will depend heavily on administrative rollout, cross-platform coordination and the balancing of flexibility for firms with rights for workers.
