Labour Reforms: Formalising and Safeguarding India’s Gig & Platform Workforce
Why in news?
India's recent labour reforms, effective from November 21, 2025, formalize gig and platform workers—such as delivery agents and app-based drivers—under the Code on Social Security, 2020, providing them legal recognition and social security for the first time. These changes integrate over 1 crore such workers into a national framework via the e-Shram portal, shifting them from informal vulnerability to protected status.​
Key Provisions
- Aggregators must contribute 1-2% of annual turnover (capped at 5% of payments to workers) to a Social Security Fund for schemes like accident insurance, health, maternity, and old-age benefits.
- Workers receive an Aadhaar-linked unique ID for portable benefits across jobs and platforms, plus access to toll-free helplines and grievance redressal.​
Workforce Impact
- The reforms cover a gig economy projected to reach 2.35 crore workers by 2029-30, ensuring minimum wages, timely payments, and safety standards while simplifying compliance for platforms.
- Benefits extend nationwide, with pilots already registering platforms like Zomato and Urban Company.​
Employer Obligations
- Platforms must register workers, maintain databases, and adhere to occupational safety, with digitized compliance reducing litigation risks.
- States like Gujarat and Maharashtra report higher investments post-similar implementations.​
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