Social Security Protection For Gig And Platform Workers Under The Code On Social Security, 2020
Author: LawSphereX
Category: Labour & Employment
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SOCIAL SECURITY PROTECTION FOR GIG AND
PLATFORM WORKERS UNDER THE CODE ON SOCIAL SECURITY, 2020 Lakshmi M, Teachers Law College, Affiliated to Karnataka State Law University
ABSTRACT
The expansion of India’s gig and platform economy has transformed labour markets, offered flexibility and entrepreneurial opportunities while simultaneously exposed workers to economic insecurity and absence of formal social protection. The enactment of the Code on Social Security, 2020 marked a significant legislative shift by formally recognizing “gig workers” and “platform workers” within the statutory framework. This article examines the extent to which the Code provides meaningful social security protection to gig workers. Through doctrinal research and critical analysis, it evaluates statutory provisions, implementation mechanisms, and existing gaps. The study argues that while the Code represents a progressive step toward inclusion, its effectiveness depends on rule-making, fiscal commitment, and enforceable accountability mechanisms.
Introduction
The rapid growth of the digital economy has significantly transformed the structure of employment in India, leading to the expansion of the unorganized sector in new forms such as gig and platform work. The gig and platform economy is creating fresh opportunities in areas such as ridesharing, delivery services, logistics, and professional work. According to NITI Aayog, the sector expected to employ over 1 crore workers in 2024 - 25, with the number projected to grow to 2. 35 crore by 2029 - 30. Companies such as Uber, Ola, Zomato, and Swiggy engage lakhs of workers classified as “independent contractors,” this classification offers flexibility, it often excludes workers from traditional labour protections such as provident fund, gratuity, maternity benefits, and health insurance.
Recognizing these vulnerabilities, the Government of India consolidated 29 central labour laws into four labour codes, including the Code on Social Security, 2020. Who Are Gig and Platform Workers? The Code on Social Security, 2020, passed by Parliament, for the first time defines ‘gig workers’ and ‘platform workers’ as, “Gig worker” means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship. “Platform work” means a work arrangement outside of a traditional employer employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment.
National Social Security Board under the Code on Social Security, 2020 The National Social Security Board (NSSB) is an advisory and coordinating body responsible for overseeing social security schemes for: • Unorganised workers • Gig workers
Platform workers The powers of the National Social Security Board are largely recommendatory in nature. It has the authority to advise the Central Government on the formulation of suitable social security schemes relating to life and disability cover, accident insurance, health and maternity benefits, old-age protection, and other welfare measures. The Board may also recommend modifications or improvements to existing schemes to ensure broader coverage and effectiveness. In addition, it advises on eligibility criteria, contribution structures, and the financial framework of the Social Security Fund, including matters relating to aggregator contributions for gig and platform workers. Among its important functions is the responsibility to review and monitor the implementation of social security schemes across the country.
The Board evaluates the performance of schemes, examines the adequacy of benefits provided, and suggests corrective measures where necessary. It also facilitates coordination between the Central Government, State Governments, and other stakeholders to ensure uniformity and efficiency in implementation. By advising on registration processes, data management systems, and portability of benefits, the Board contributes to strengthening institutional mechanisms for delivery of welfare measures. Although the National Social Security Board does not possess direct enforcement or regulatory powers, its role is significant in policy formulation and oversight. Social Security and Support for Gig and Platform Workers under Code on Social Security The Code empowers the government to frame and implement social security schemes covering gig and platform workers.
These benefits may include: • Statutory Welfare Benefits • Life and disability insurance • Accident insurance • Health benefits / medical cover
Maternity benefits • Old-age protection (pension/old-age support) These are broadly like protections previously available only to formal sector workers. e-Shram Portal Registration & Identity Cards The government is scaling a major initiative to register gig/platform workers who completed
16 years of age, and aggregators on the e-Shram portal a national database for unorganised
workers. Once registered, gig workers receive a unique Aadhaar-linked Universal Account Number (UAN), making their benefits portable across platforms and states — useful for workers who switch jobs or locations. Workers can self-register on the government’s e-Shram portal, creating a comprehensive database linking them to social security schemes and facilitating easier delivery of benefits and policy planning. How Is This Social Security Financed The Social Security Code sets out a funding architecture for a National Social Security Fund for gig and platform workers: Aggregators must contribute 1-2% of their annual turnover to the social security fund. This contribution is capped at a maximum of 5% of the amounts paid or payable to workers in a financial year.
This is a significant change for the first time; digital platforms have explicit financial obligations toward the welfare of the workers who provide critical services on their platforms. In addition to aggregator contributions, the Social Security Fund may be financed by: • Central and state government support, • CSR funds,
Other sources as determined by law. Eligibility & Implementation To qualify for social security coverage under the new rules, draft thresholds have been proposed, such as: Minimum of 90 calendar days of engagement with one aggregator, or
120 days across multiple aggregators within a financial year.
Grievance Redressal Before the implementation of Social Security Code, Gig and Platform workers had no access to formal labour laws and therefore, no structured grievance redressal mechanism. Under the Social Security Code, the appropriate Government may set-up a toll-free helpline, call centre, or facilitation centre to address worker grievances and ensure timely support. Critical Analysis of the code While the Code is progressive in recognition, several structural weaknesses remain: • Non-mandatory schemes – Benefits depend on government notification. • Absence of employer-employee recognition – Platforms avoid labour liabilities. • Implementation delay – Many provisions await operational rules. • Limited enforceability – Workers lack direct claim mechanisms. • No clear dispute resolution framework specific to gig workers.
Thus, the Code adopts a welfare-based model rather than a rights-based model. Recommendations • Mandatory minimum social security coverage irrespective of scheme notification. • Clear contribution percentages for aggregators.
Creation of a dedicated Gig Workers Welfare Board. • Statutory grievance redress mechanism. • Integration with health schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana. Conclusion The Code on Social Security, 2020 marks a historic step by legally acknowledging gig and platform workers within India’s labour law framework. However, recognition alone does not guarantee protection. Safeguarding gig and platform workers are not merely a policy choice but a mandate rooted in the principles of social justice, equality, and dignity of labour. Gig and platform workers, once largely invisible, highly vulnerable and without uniform benefits, now gain a baseline of protections and social security coverage. This reform marks a major step towards formalizing the Gig economy, granting these workers legal recognition, tangible support, and access to welfare schemes that were long missing.
For the gig economy to remain sustainable and equitable, India must move beyond symbolic inclusion toward enforceable, rights-based social security protection. Strengthening implementation, clarifying financial responsibility, and ensuring accountability mechanisms are essential to safeguarding the dignity and livelihood of gig workers in the digital age.