Gig and Platform Workers Social Security

The Social Security Code extends formal protection to gig and platform workers for the first time in India ensuring that digital economy workers receive welfare coverage through a structured contribution system. It provides a framework for aggregator contributions Government funded benefits and national registration enabling social security access to millions of independent digital workers. This article explains the Code in detail to help HR teams and digital platforms prepare for Labour Codes 2025.

Introduction

Gig and platform workers form a significant part of the modern workforce especially in India’s rapidly growing digital and service economy. These include app based drivers delivery partners online service providers and freelance service workers who operate on a task based or platform mediated model. Earlier these workers largely remained outside traditional social security frameworks since they were neither formal employees nor fully independent contractors under labour law.

The Social Security Code redefines this landscape by providing dedicated social security schemes for gig and platform workers through a tripartite contribution system involving aggregators Central Government and State Governments. This structure increases financial protection for workers while ensuring clarity and predictability for digital platforms. The Code also sets up national registration systems social security funds and schemes such as health insurance disability support accident benefits and old age protection.

Key Changes at a Glance

• New legal definitions for gig workers and platform workers
• Aggregator contribution system for social security funds
• National database and mandatory registration
• Government notified schemes for health social insurance and old age protection
• Coverage for accident disability and maternity benefits (based on scheme)
• No employer employee relationship required for benefits
• Flexible contribution structure suitable for platform based work
• Protection for multiple platform workers under one system
• Use of digital compliance and online record systems

Detailed Explanation of Gig and Platform Worker Social Security

The points below summarise the key components of the Social Security Code that directly impact gig workers platform workers and digital aggregators.

1. Legal Definitions and Worker Categories

The Code clearly distinguishes between worker groups.

• Gig Worker
  A person who performs work outside of traditional employment relationships such as freelance or task based services.
• Platform Worker
  A worker engaged by a digital platform or online aggregator to provide services such as delivery driving or on demand tasks.
• Unorganised Worker
  Self employed or home based workers outside formal employment structures.

A detailed comparison is included later in this article to help HR teams and platforms understand coverage obligations.

2. Aggregator Contribution Framework

Aggregators are required to contribute a percentage of their annual turnover towards the social security fund for gig and platform workers. The exact percentage will be notified by the Government.
Aggregators include services such as:

• Ride hailing platforms
• Food delivery apps
• E commerce and logistics platforms
• Professional service marketplaces
• Home service applications

The contribution framework provides a predictable structure for supporting worker social security without creating a direct employer employee relationship.

3. Social Security Schemes for Gig Workers

Central and State Governments will notify specific schemes covering:

• Health and maternity benefits
• Accident and disability insurance
• Life and term insurance
• Old age protection
• Skill development and training support

This ensures that workers in the digital economy receive similar protections that organised sector employees enjoy under PF ESIC and other schemes. For broader coverage details you may also read Social Security Code Explained.

4. Registration System for Workers and Aggregators

Gig workers platform workers and unorganised workers must register on the designated portal using Aadhaar based authentication. Aggregators also must register their organisations and worker lists digitally.

This helps build a national database enabling portability of benefits across platforms and States.

5. Benefit Portability Across Platforms

Workers who serve multiple platforms will enjoy combined benefits through a unified system. Contributions made by different aggregators accumulate under the worker’s unique registration ID.

This model supports workers who perform work through multiple apps.

6. No Employer Employee Relationship Required

A unique feature of the Code is that gig and platform workers receive social security without being classified as employees.
This means:

• No PF
• No ESIC
• No gratuity
• No wage obligations

Instead they receive benefits through separate schemes funded by aggregators and Governments.

This helps avoid legal ambiguity while still ensuring welfare coverage.

7. Eligibility Conditions for Specific Schemes

Each scheme will define eligibility based on:

• Minimum number of working hours
• Minimum number of tasks
• Annual income from platform work
• Registration status
• Verified identity

This ensures that benefits reach active and genuine workers.

8. Penalties for Non Compliance by Aggregators

Aggregators failing to contribute required amounts may face penalties including fines or recovery orders. The exact procedures will be defined by the Central Government.

9. Impact for Employers and Digital Platforms

Platforms must:

• Calculate contributions based on notified turnover percentage
• Maintain updated worker databases
• Coordinate with Government portals
• Manage periodic reporting
• Educate workers on registration
• Maintain digital compliance documentation

This ensures transparent protection for gig and platform workers.

Gig Workers vs Platform Workers vs Unorganised Workers vs Employees

Category	How They Work	Who Pays Contribution	Type of Benefits	Employment Relationship	Included in Which Codes
Gig Worker	Task based non platform work	Government plus worker plus aggregator (scheme specific)	Accident insurance social insurance old age support	No employer employee relationship	Social Security Code
Platform Worker	Works through digital apps providing on demand services	Aggregator plus Government	Health maternity accident disability old age schemes	No employer employee relationship	Social Security Code
Unorganised Worker	Self employed home based or informal work	Government funded schemes	Health insurance life cover pension schemes	No employer employee relationship	Social Security Code
Employee	Works under contract of employment	Employer plus employee contributions	PF ESIC gratuity maternity benefits	Yes employer employee relationship	All Labour Codes

This table helps HR teams platforms and policymakers distinguish between worker categories and their entitlement structures.

HR Checklist for Immediate Action for Gig and Platform Worker Social Security Compliance

• Register all gig and platform workers on the central portal
• Maintain updated worker lists with Aadhaar based verification
• Calculate aggregator contributions based on applicable turnover percentage
• Communicate registration steps clearly to all workers
• Implement internal systems for periodic reporting
• Prepare digital compliance documents for inspections
• Monitor Government notifications for scheme specific requirements
• Review agreements with workers to ensure clarity on benefits

Explore HRStop Today

HRStop supports compliance with gig and platform worker social security by providing digital registration modules contribution tracking document management and automated reminders. It simplifies compliance for aggregators and ensures workers are properly registered under the new framework.

How HRStop Helps

• Digital worker registration support
• Contribution calculation tracking
• Access controlled worker records
• Automated compliance reminders
• Document upload and verification workflows
• Unified dashboard for all worker categories

Related Articles

• Social Security Code Explained
• EPF and ESIC Changes Under New Codes
• Inter State Migrant Worker Provisions
• Sector Wise Comparison Table Under New Labour Codes
• Impact of Labour Codes on Key Industries
• India’s New Labour Codes 2025 Overview

Conclusion

The Social Security Code marks a historic shift by extending welfare coverage to gig and platform workers creating a support system suitable for India’s evolving digital economy. With structured contributions Government backed schemes and centralised worker registration the Code strengthens protection for millions of workers outside traditional employment. HR teams aggregators and digital platforms must adopt digital systems update contribution workflows and educate workers to ensure full compliance as Labour Codes 2025 become operational.

FAQs

Are gig and platform workers covered under PF and ESIC
No PF and ESIC apply only to traditional employees. Gig workers receive separate scheme based benefits.

Do aggregators need to contribute every month
Contributions are based on annual turnover and timelines will be notified in rules.

Can workers registered on multiple platforms receive combined benefits
Yes benefits are portable across platforms.

Is registration mandatory for receiving benefits
Yes workers must register on the designated central portal.

Do unorganised workers receive similar benefits
Yes but benefits depend on specific government funded schemes.

Does the Code create an employer employee relationship
No it provides social security without altering employment classification.