Labour & Employment, 11:30 AM IST – India’s new Labour Codes have quietly unlocked one of the biggest shifts for the country’s gig economy. For the first time, platform workers — the people who deliver food, drive cabs, pick up parcels, commute and keep cities moving 24/7 are officially brought under social security protection. The Code on Social Security, 2020, which came into effect on November 21, 2025, formally defines gig and platform workers for the first time and mandates a new welfare framework for them.
More than 7 crore gig and platform workers stand to benefit, including those working with Swiggy, Zomato, Ola, Uber, Dunzo, Blinkit and app-based service platforms.
Here’s what actually changes now.
1. Gig & Platform Workers Finally Recognised in Law
Until now, delivery partners and app drivers existed in a grey area, stuck between being neither employee nor fully independent.
Under the new rules, they are officially recognised as “gig workers” and “platform workers”, giving them a first legal identity.
This recognition itself is a big shift because benefits, schemes and insurance can now legally attach to them.
2. Social Security Fund Created – Platforms Must Contribute
Swiggy, Zomato, Ola and other platforms have to contribute 1–2% of their annual turnover (capped at 5% of what they pay workers) into a social security fund.
This fund will support benefits like:
- Accident cover
- Health support (Employees’ State Insurance, ESI and Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) health scheme)
- Disability support
- Provident Fund (PF) and Pension schemes
- Old-age protection
- Maternity benefits
- Emergency assistance
Example:
If a food-delivery platform’s turnover is ₹200 crore, it may contribute ₹2–4 crore into the fund annually.
Workers don’t need to pay anything extra for this protection.
3. Aadhaar-Linked Universal Worker ID
Workers will be registered through a universal ID, Universal Account Number (UAN), linked to Aadhaar.
This makes the records clear and benefits portable.
A delivery worker shifting from Zomato to Swiggy will still retain the same benefits.
4. State Role Gets Bigger
Some states have already moved faster. As per the Deccan Herald report on 19 August 2025, Karnataka recently passed its own social-security bill for Support up to 4 lakh Platform-Based Workers. It is setting up a welfare board and additional protections state-wise.
More states are expected to roll out their versions.
5. Real Example: How Life Changes for a Rider
- Take a delivery rider doing 10 hours a day:
- Earlier, if he met with an accident, the platform was not required to support him beyond basic insurance (if any).
- Under the new system, he becomes eligible for accident insurance + disability cover through the social security fund — and can access it even if he switches apps.
Before vs After for Gig Workers
| Area | Earlier (Before Codes) | Now (After Codes) |
|---|---|---|
| Legal Status | No formal recognition | Official gig/platform category |
| Social Security | None guaranteed | Accident, disability, old-age support |
| Platform Contribution | Not required | 1–2% of turnover to welfare fund |
| Benefit Portability | Not possible | Universal Aadhaar-linked ID |
| State Welfare | Limited | Expanding boards & schemes |
Bottom Line
India has taken its first real step toward protecting the people powering the digital economy. Gig workers won’t instantly get every benefit a salaried employee does, but they now have a recognised identity, a safety net via social security, and a system that can grow with them. For a sector built on flexibility, this is the stability workers have waited years for.
