Introduction
India’s gig workforce expanded 55% between FY21 and FY25, reaching 1.2 crore workers. Constituting Social Security Boards is significant, but universal protection requires enforceable benefits, sustainable financing and portability.
From Recognition to Protection
- Statutory Recognition: The Code on Social Security, 2020 formally recognises gig and platform workers and provides for life, disability, accident, health, maternity and old-age protection under Section 114. The newly constituted National Social Security Boards provide an institutional mechanism for recommending and monitoring welfare schemes.
- Rising Economic Significance: The Economic Survey 2025–26 estimates 1.2 crore gig workers in FY25, projected to reach 6.7% of the workforce by 2029–30, contributing ₹2.35 lakh crore to GDP. Their protection is therefore essential for inclusive growth.
- Existing Infrastructure: e-Shram has registered over 31 crore unorganised workers, including gig and platform workers. Its One-Stop-Solution integrates welfare schemes and facilitates portability through a Universal Account Number.
Governance & Operational Bottlenecks
- Advisory Mandate vs. Statutory Enforcement: The Board functions primarily as an advisory and monitoring body without independent revenue-raising power or statutory authority to enforce welfare disbursements. Example: Non-binding scheme recommendations.
- Fund Capitalization & Aggregator Contribution Delays: The funding mechanism—requiring platform aggregators to contribute 1–2% of annual turnover (capped at 5% of payout) lacks operational collection rules and escrow architecture. Example: Unnotified aggregator levy.
- Registration Gaps & Portability Deficits: Inter-state platform workers and multi-homing gig drivers face registration friction on the e-Shram portal, limiting cross-border benefit portability. Example: Inter-state e-Shram friction.
- Fragmented State-Level Implementation: Social security remains dependent on state-level notifications and board rules, leading to uneven coverage between progressive states and lagging jurisdictions. Example: Asymmetric state notifications.
Universal Social Protectionwx`
- Constitutional Mandate (Articles 38 & 41): Fulfilling Directive Principles of State Policy requires state action to secure social order, right to work, and public assistance during disability or old age. Example: Article 41 public assistance.
- ILO Centenary Declaration Alignment: Extending social safety nets (health insurance, accident cover, maternity benefits) to platform workers aligns India with international labor standards. Example: ILO universal protection.
- Economic Productivity Dividend: Social protection reduces worker vulnerability, mitigates high turnover rates in quick-commerce logistics, and builds a sustainable digital services ecosystem. Example: Platform labor retention.
Way Forward
- Notify Aggregator Contribution Guidelines: Frame precise rules for automated, transaction-based algorithm deductions into the Social Security Fund to ensure steady revenue.
- Universalize e-Shram Dynamic Integration: Link e-Shram registries directly with platform APIs to automatically register gig workers upon onboarding, removing manual application barriers.
- Mandate Portable Health & Life Cover: Formulate baseline, portable insurance plans covering accident, health, and disability insurance across platforms.
- Institutionalize Tripartite Dispute Resolution: Empower National and State Social Security Boards to resolve worker-aggregator disputes regarding algorithmic compensation and arbitrary deactivations.
Conclusion
As highlighted in the NITI Aayog Report on India’s Booming Gig and Platform Economy, institutionalizing social security is vital for equitable development. Moving from board notification to active fund capitalization and scheme execution will protect informal workers, reduce precarity, and advance Viksit Bharat 2047 goals.
