Accident cover to pension: What govt's social security push means for gig workers

The Centre is moving ahead with plans to extend social security benefits to India's rapidly expanding gig and platform workforce, including accident insurance, health coverage, maternity benefits and old-age protection. The government is also urging platform companies to integrate worker databases with the e-Shram portal before the June 22 deadline to facilitate the rollout of welfare schemes.

Speaking at a stakeholders' consultation on gig and platform workers organised by FICCI on Friday, Ashutosh Pednekar, Joint Secretary and Director General (Labour Welfare) in the Ministry of Labour and Employment, said the government is actively implementing provisions under the Code on Social Security to provide a formal safety net for workers in the sector.

Gig economy

The Indian gig economy has witnessed rapid growth in recent years, driven by food delivery, ride-hailing, logistics, e-commerce and freelance digital services. According to Pednekar, nearly one crore workers are currently engaged in the gig and platform economy, with the number expected to rise to around 2.5 crore by the end of the decade.

Calling the sector strategically important for India's labour market, he said the government has received approval to operationalise the National Social Security Board for Gig and Platform Workers. The board is expected to play a key role in designing and overseeing welfare initiatives aimed at improving financial security and social protection for workers who often lack traditional employment benefits.

MUST READ: Swiggy won’t engage in Walmart-Reliance spending war even if it means losing some customers

Social Security Fund

The government is also in the process of operationalising a dedicated Social Security Fund that will help finance welfare measures for gig and platform workers. Officials are currently consulting stakeholders and fund managers to finalise the framework through which benefits will be delivered.

Under the Social Security Code, the government is mandated to provide various forms of protection to gig workers. These include accident insurance, health benefits, maternity support, old-age protection, cash assistance, educational support and even assistance for funeral expenses. While the broad framework already exists, officials said work is underway to convert these provisions into operational schemes that workers can access seamlessly.

The move comes amid growing demands from worker groups for stronger social security protections. At the same time, policymakers are attempting to strike a balance between worker welfare and the flexibility that has enabled the platform economy to grow rapidly. Industry stakeholders have often expressed concerns that excessive regulation could affect business models built around flexible work arrangements.

MUST READ: Zepto unlisted shares crash 25% as quick commerce major eyes $1 billion IPO in Q2

e-Shram portal

A key pillar of the government's strategy is the integration of platform companies' worker databases with the e-Shram portal, the national database for unorganised workers. Once integrated, data from aggregators and the e-Shram platform will be linked, enabling real-time tracking of welfare benefits and reducing duplication.

Officials said workers will eventually be able to access information about their entitlements and benefits through a digital, app-based interface. The system is expected to improve portability, allowing workers to retain benefits even when switching between platforms or working with multiple aggregators.

Pednekar urged platform companies to complete the integration process before June 22, noting that the government is working within tight timelines to operationalise the system. As gig work becomes an increasingly important source of employment, particularly for young Indians, policymakers view the initiative as a significant step towards building a more inclusive and secure labour ecosystem.

MUST READ: Why your Swiggy-Zomato order may get costlier now, here’s the math

(With agency inputs)