The Union government has released draft rules to extend social security to India’s gig and platform workers, proposing registration, welfare boards, and shared funding, sparking cautious optimism among workers, platforms, and labour experts as consultations begin.

In a significant policy step, the Union Ministry of Labour and Employment has drafted new social security rules aimed at providing long-awaited welfare protection to gig and platform workers across India.

The proposed framework seeks to give operational shape to the Code on Social Security, 2020, with a focus on workers engaged through digital platforms such as ride-hailing apps, food delivery services, e-commerce logistics, and freelance marketplaces.

If notified, the rules could mark a turning point for millions of workers who currently operate outside traditional employer–employee relationships and often lack access to health insurance, accident cover, maternity benefits, or old-age security.

The draft has been placed in the public domain, inviting feedback from state governments, platform companies, worker collectives, and civil society organisations.

What the Draft Rules Propose

At the heart of the draft rules is a national registration mechanism for gig and platform workers. Once registered on a central portal, workers would become eligible for a range of social security schemes framed by the Centre and implemented in coordination with states.

These may include life and disability cover, health benefits, maternity support, and old-age protection, depending on the schemes notified from time to time.

The rules also provide for the creation of a National Social Security Board for gig and platform workers, along with corresponding state-level boards.

These bodies would be responsible for advising governments on suitable welfare schemes, monitoring implementation, and recommending changes based on emerging needs in the sector.

A senior official from the Labour Ministry said the intent is to “strike a balance between the flexibility of the gig economy and the fundamental right of workers to social security.”

The official added that the draft framework aims to ensure that “workers powering the digital economy are not left vulnerable to illness, accidents, or income shocks.”

Funding And The Question Of Responsibility

One of the most closely watched aspects of the draft rules is the proposed funding structure. The Code on Social Security allows for welfare schemes to be financed through a combination of Central and state government contributions, grants, and a contribution from aggregators or platform companies.

While the draft rules reiterate this shared-responsibility model, they stop short of specifying exact contribution rates, leaving room for further consultation.

Platform companies have long argued that rigid contribution norms could undermine the flexibility that attracts workers to gig roles in the first place.

At the same time, worker unions contend that without clearly defined financial obligations, social security promises risk remaining on paper.

Labour experts note that clarity on funding will be crucial for the credibility of the framework. “Recognition without enforceable benefits will not change ground realities,” said a labour economist, pointing out that many gig workers earn modest incomes despite long working hours.

Why Gig Workers Have Been Demanding Protection

India’s gig economy has grown rapidly over the past decade, driven by smartphone penetration, digital payments, and consumer demand for on-demand services. Estimates suggest that millions of Indians now depend on gig work as a primary or supplementary source of income, a number expected to rise sharply in the coming years.

However, this growth has been accompanied by concerns over job insecurity, fluctuating pay, algorithmic management, and lack of grievance redressal.

The vulnerabilities of gig workers became especially visible during the COVID-19 pandemic, when many continued delivering essential goods despite health risks, often without insurance or paid leave.

Worker collectives have repeatedly demanded legal recognition, minimum earnings guarantees, and social security. Several state governments have announced limited welfare measures, but the absence of a uniform national framework has resulted in uneven coverage and implementation.

Platform Companies And Their Concerns

Digital platforms, while welcoming the government’s attempt to bring regulatory clarity, have expressed reservations about potential compliance burdens.

Industry representatives maintain that gig work is fundamentally different from traditional employment and should not be governed by the same rules.

They argue that many workers value the autonomy to choose working hours and platforms, and that excessive regulation could reduce opportunities, particularly for those using gig work as a secondary income source.

Some platforms have also pointed to existing voluntary insurance and welfare initiatives they have introduced for partners, suggesting that collaborative, rather than punitive, regulation would be more effective.

The draft rules’ consultation process is therefore being seen as a critical space for negotiation between economic innovation and worker protection.

Legal And Policy Context

The Code on Social Security, 2020, was passed as part of a broader consolidation of India’s labour laws, with the stated aim of simplifying compliance while expanding coverage.

For the first time, the Code explicitly recognised gig workers and platform workers as distinct categories, raising expectations of meaningful welfare measures.

However, implementation has been slow, with many provisions awaiting detailed rules and notifications. The newly released draft rules signal renewed momentum, though experts caution that timelines, enforcement mechanisms, and coordination between Centre and states will determine actual impact.

The Logical Indian’s Perspective

At The Logical Indian, we believe that progress in the digital economy must be rooted in dignity, empathy, and fairness. Gig workers have become an indispensable part of everyday life, delivering food, ferrying passengers, and powering online commerce, often at great personal risk and uncertainty.

Recognising their contribution through social security is not merely an administrative reform but a step towards a more humane and inclusive economy.

For this promise to translate into real change, the final rules must ensure transparency, adequate funding, and genuine participation of workers in decision-making.

Dialogue, not confrontation, will be key to building trust between the government, platforms, and workers.