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Gig & platform worker social security
What it is
The Code on Social Security 2020 defines gig and platform workers as a distinct category and requires aggregators to contribute 1-2% of turnover, capped at 5% of payments made to such workers, toward a social security fund
The labour codes took effect 21 Nov 2025, and India's gig workforce is projected to reach around 2.35 crore by 2029-30 from roughly 77 lakh in 2020-21
Impact on industries
- Converts a variable, contract-free cost into a statutory levy on turnover, which lands hardest on delivery, ride-hailing and quick-commerce models built on flexible labour
- Registration and contribution tracking impose administrative cost on platforms built to avoid an employment relationship
- Formalisation should reduce the attrition that plagues last-mile delivery, and gives platforms a defensible answer to the misclassification challenges seen in other jurisdictions
- It creates a large insurable cohort with documented income, though state notifications determine the effective burden more than the headline rate