LABOUR LAW 2026
India's gig economy has become a significant force in the labor market, offering flexibility
and a wide range of opportunities to millions of workers. In 2022, around 7.7 million people
were involved in gig work, and estimates from NITI Aayog indicate that this figure could rise
to 23.5 million by 2030. This expected expansion highlights both the evolving nature of
employment and the growing role of technology in shaping work environments.1
The gig economy includes various employment arrangements such as freelance work, short-
term contracts, and task-based jobs enabled by digital platforms. This setup allows workers to
take on multiple jobs at once, offering them more control over their schedules and earnings.
Industries that heavily rely on gig workers include e-commerce, transportation, logistics,
delivery services, and IT.
In recent years, several factors have contributed to the growing prominence of the gig
economy:
Technological Advancements: The widespread availability of smartphones and
internet access has led to the emergence of platforms that connect gig workers with
employers. This digital infrastructure streamlines job matching and enables smooth
transactions.
Evolving Workforce Preferences: A rising number of workers prefer flexible job
arrangements that help them balance personal and professional commitments. The gig
economy meets this demand by providing work opportunities that can be customized
to individual needs.
Urbanization: With the expansion of urban areas, the demand for adaptable services
has increased. Gig workers play a vital role in fulfilling these needs, especially in
industries such as food delivery and ride-hailing.
The NITI Aayog report projects a significant expansion of the gig workforce in the coming
decade. By 2030, gig workers are expected to make up approximately 6.7% of India’s non-
agricultural workforce. This forecast highlights the sector’s potential for substantial job
creation, with estimates suggesting that the gig economy could generate up to 90 million jobs
across various industries.2
The expected growth is not only in numbers but also in the nature of work. As businesses
increasingly seek specialized talent for short-term projects, the demand for skilled gig
workers is set to rise. Currently, about 47% of gig jobs fall under the medium-skilled
category, while nearly 22% are classified as high-skilled roles. This trend reflects a gradual
shift toward more specialized opportunities within the gig economy.
1
A Focus on India’s Booming Gig and Platform Economy, Times of India (Mar. 31, 2024),
https://timesofindia.indiatimes.com/blogs/truth-lies-and-politics/a-focus-on-indias-booming-gig-and-platform-
economy/.
2
NITI Aayog, Policy Brief: India’s Booming Gig and Platform Economy (June 27, 2022),
https://www.niti.gov.in/sites/default/files/2023-06/Policy_Brief_India's_Booming_Gig_and_Platform_Economy
_27062022.pdf.
,Several key industries play a crucial role in shaping India’s gig economy:
E-commerce: The rapid growth of online shopping has increased the need for logistics
and delivery services. Companies like Amazon and Flipkart heavily depend on gig
workers for last-mile delivery.
Transportation: Ride-hailing services such as Uber and Ola have transformed urban
mobility while offering flexible job opportunities for drivers, making this sector a
major employer of gig workers.
Delivery Services: Platforms like Zomato and Swiggy have built extensive networks
of gig workers who transport meals from restaurants to customers. This sector has
witnessed significant expansion, particularly during the pandemic.
IT and Digital Services: The demand for freelance professionals in fields like software
development, graphic design, and digital marketing has risen as businesses
increasingly seek specialized skills without hiring full-time employees.3
While the expansion of the gig economy offers numerous opportunities, it also brings
significant challenges concerning worker rights and protections. Gig workers often do not
have access to traditional employment benefits such as health insurance, paid leave, and
retirement plans. This inherent job insecurity highlights the need to reassess labor laws to
ensure adequate safeguards for these workers.
The NITI Aayog report underscores the importance of implementing social security measures
tailored to gig workers. Initiatives like identity cards and registration on platforms such as e-
Shram aim to formalize their status in the labor market and grant them access to welfare
programs.
Additionally, as urbanization accelerates in Tier-II and Tier-III cities, these areas are
emerging as key centers for gig work. The growing adoption of digital technology in these
regions is expected to further expand employment opportunities for local communities.
PROVISIONS FOR GIG WORKERS UNDER THE SOCIAL SECURITY CODE, 2020
The Code on Social Security, 2020 marks a major reform in India’s labor framework,
particularly by bringing gig workers under the social security umbrella. This legislation
consolidates and revises multiple existing labor laws to extend social security benefits to all
workers, including those in the unorganized sector, gig workers, and platform workers. This
represents a crucial step in acknowledging the evolving nature of employment in modern
India. By integrating nine previous labor laws, the code seeks to establish a more
comprehensive system for worker protection and welfare.4
3
Future of India's Gig Work, Drishti IAS (June 2024), https://www.drishtiias.com/daily-updates/daily-news-
editorials/future-of-india-s-gig-work.
4
PRS Legislative Research, The Code on Social Security, 2020, https://prsindia.org/billtrack/the-code-on-social-
security-2020.
, Key Provisions for Gig Workers:
The Code explicitly classifies gig workers as individuals involved in temporary or freelance
work facilitated by digital platforms. This recognition is essential as it legitimizes their status
within the legal framework, granting them access to social security benefits.5
Under the Code, gig workers are entitled to several benefits, including:
Provident Fund: A savings scheme with contributions from both employers and
workers.
Insurance Coverage: Includes life and disability insurance.
Maternity Benefits: Financial assistance during maternity leave.
Gratuity: Eligibility for gratuity payments upon the completion of service.6
The Code requires gig workers to register on specified platforms to access these benefits.
This registration process is crucial for ensuring they receive their entitled protections and
helps track their contributions.
The funding for these social security benefits is based on contributions from various
stakeholders, including aggregators (platform companies), the central government, and state
governments. Aggregators must contribute a percentage of their turnover to the social
security fund, which is designed to support gig workers.7
The Code establishes mechanisms to address grievances experienced by gig workers, which
is essential for safeguarding their rights and ensuring that employers comply with the
regulations. This provision helps create a structured process for resolving issues, providing
gig workers with a formal channel for raising concerns and seeking redress.
The introduction of the Code on Social Security represents a significant advancement in
recognizing gig work as a legitimate form of employment deserving of protection. By
explicitly including gig workers, the code acknowledges the evolving nature of work in
India’s economy.
Increased Awareness and Recognition: The code has raised awareness about gig
work as an important employment sector, sparking discussions on labor rights that
were previously overlooked.
Framework for Future Policies: By establishing a legal framework, the code paves
the way for future policy developments aimed at enhancing worker protections and
addressing changing employment trends.
Potential for Improved Welfare: With access to social security benefits, gig workers
are likely to experience greater financial stability and well-being, which will help
reduce their vulnerability to economic challenges.8
5
Social Security Code: Provisions for Gig and Platform Workers, Corrida Legal (June 23, 2024),
https://corridalegal.com/social-security-code-provisions-for-gig-and-platform-workers/.
6
Code on Social Security 2020 and Gig Workers, Drishti IAS (Aug. 2023), https://www.drishtiias.com/daily-
updates/daily-news-analysis/code-on-social-security-2020-and-gig-workers.
7
PRS Legislative Research, The Code on Social Security, 2020, https://prsindia.org/billtrack/the-code-on-social-
security-2020.
8
Ulka Bhattacharyya & Soumya Jha, Understanding Social Security for Gig Workers: Analyzing Recent
Developments, 11 NLIU L. Rev. 61 (2022), available at
https://nliulawreview.nliu.ac.in/wp-content/uploads/2022/02/3.-Understanding-Social-Security-for-Gig-
India's gig economy has become a significant force in the labor market, offering flexibility
and a wide range of opportunities to millions of workers. In 2022, around 7.7 million people
were involved in gig work, and estimates from NITI Aayog indicate that this figure could rise
to 23.5 million by 2030. This expected expansion highlights both the evolving nature of
employment and the growing role of technology in shaping work environments.1
The gig economy includes various employment arrangements such as freelance work, short-
term contracts, and task-based jobs enabled by digital platforms. This setup allows workers to
take on multiple jobs at once, offering them more control over their schedules and earnings.
Industries that heavily rely on gig workers include e-commerce, transportation, logistics,
delivery services, and IT.
In recent years, several factors have contributed to the growing prominence of the gig
economy:
Technological Advancements: The widespread availability of smartphones and
internet access has led to the emergence of platforms that connect gig workers with
employers. This digital infrastructure streamlines job matching and enables smooth
transactions.
Evolving Workforce Preferences: A rising number of workers prefer flexible job
arrangements that help them balance personal and professional commitments. The gig
economy meets this demand by providing work opportunities that can be customized
to individual needs.
Urbanization: With the expansion of urban areas, the demand for adaptable services
has increased. Gig workers play a vital role in fulfilling these needs, especially in
industries such as food delivery and ride-hailing.
The NITI Aayog report projects a significant expansion of the gig workforce in the coming
decade. By 2030, gig workers are expected to make up approximately 6.7% of India’s non-
agricultural workforce. This forecast highlights the sector’s potential for substantial job
creation, with estimates suggesting that the gig economy could generate up to 90 million jobs
across various industries.2
The expected growth is not only in numbers but also in the nature of work. As businesses
increasingly seek specialized talent for short-term projects, the demand for skilled gig
workers is set to rise. Currently, about 47% of gig jobs fall under the medium-skilled
category, while nearly 22% are classified as high-skilled roles. This trend reflects a gradual
shift toward more specialized opportunities within the gig economy.
1
A Focus on India’s Booming Gig and Platform Economy, Times of India (Mar. 31, 2024),
https://timesofindia.indiatimes.com/blogs/truth-lies-and-politics/a-focus-on-indias-booming-gig-and-platform-
economy/.
2
NITI Aayog, Policy Brief: India’s Booming Gig and Platform Economy (June 27, 2022),
https://www.niti.gov.in/sites/default/files/2023-06/Policy_Brief_India's_Booming_Gig_and_Platform_Economy
_27062022.pdf.
,Several key industries play a crucial role in shaping India’s gig economy:
E-commerce: The rapid growth of online shopping has increased the need for logistics
and delivery services. Companies like Amazon and Flipkart heavily depend on gig
workers for last-mile delivery.
Transportation: Ride-hailing services such as Uber and Ola have transformed urban
mobility while offering flexible job opportunities for drivers, making this sector a
major employer of gig workers.
Delivery Services: Platforms like Zomato and Swiggy have built extensive networks
of gig workers who transport meals from restaurants to customers. This sector has
witnessed significant expansion, particularly during the pandemic.
IT and Digital Services: The demand for freelance professionals in fields like software
development, graphic design, and digital marketing has risen as businesses
increasingly seek specialized skills without hiring full-time employees.3
While the expansion of the gig economy offers numerous opportunities, it also brings
significant challenges concerning worker rights and protections. Gig workers often do not
have access to traditional employment benefits such as health insurance, paid leave, and
retirement plans. This inherent job insecurity highlights the need to reassess labor laws to
ensure adequate safeguards for these workers.
The NITI Aayog report underscores the importance of implementing social security measures
tailored to gig workers. Initiatives like identity cards and registration on platforms such as e-
Shram aim to formalize their status in the labor market and grant them access to welfare
programs.
Additionally, as urbanization accelerates in Tier-II and Tier-III cities, these areas are
emerging as key centers for gig work. The growing adoption of digital technology in these
regions is expected to further expand employment opportunities for local communities.
PROVISIONS FOR GIG WORKERS UNDER THE SOCIAL SECURITY CODE, 2020
The Code on Social Security, 2020 marks a major reform in India’s labor framework,
particularly by bringing gig workers under the social security umbrella. This legislation
consolidates and revises multiple existing labor laws to extend social security benefits to all
workers, including those in the unorganized sector, gig workers, and platform workers. This
represents a crucial step in acknowledging the evolving nature of employment in modern
India. By integrating nine previous labor laws, the code seeks to establish a more
comprehensive system for worker protection and welfare.4
3
Future of India's Gig Work, Drishti IAS (June 2024), https://www.drishtiias.com/daily-updates/daily-news-
editorials/future-of-india-s-gig-work.
4
PRS Legislative Research, The Code on Social Security, 2020, https://prsindia.org/billtrack/the-code-on-social-
security-2020.
, Key Provisions for Gig Workers:
The Code explicitly classifies gig workers as individuals involved in temporary or freelance
work facilitated by digital platforms. This recognition is essential as it legitimizes their status
within the legal framework, granting them access to social security benefits.5
Under the Code, gig workers are entitled to several benefits, including:
Provident Fund: A savings scheme with contributions from both employers and
workers.
Insurance Coverage: Includes life and disability insurance.
Maternity Benefits: Financial assistance during maternity leave.
Gratuity: Eligibility for gratuity payments upon the completion of service.6
The Code requires gig workers to register on specified platforms to access these benefits.
This registration process is crucial for ensuring they receive their entitled protections and
helps track their contributions.
The funding for these social security benefits is based on contributions from various
stakeholders, including aggregators (platform companies), the central government, and state
governments. Aggregators must contribute a percentage of their turnover to the social
security fund, which is designed to support gig workers.7
The Code establishes mechanisms to address grievances experienced by gig workers, which
is essential for safeguarding their rights and ensuring that employers comply with the
regulations. This provision helps create a structured process for resolving issues, providing
gig workers with a formal channel for raising concerns and seeking redress.
The introduction of the Code on Social Security represents a significant advancement in
recognizing gig work as a legitimate form of employment deserving of protection. By
explicitly including gig workers, the code acknowledges the evolving nature of work in
India’s economy.
Increased Awareness and Recognition: The code has raised awareness about gig
work as an important employment sector, sparking discussions on labor rights that
were previously overlooked.
Framework for Future Policies: By establishing a legal framework, the code paves
the way for future policy developments aimed at enhancing worker protections and
addressing changing employment trends.
Potential for Improved Welfare: With access to social security benefits, gig workers
are likely to experience greater financial stability and well-being, which will help
reduce their vulnerability to economic challenges.8
5
Social Security Code: Provisions for Gig and Platform Workers, Corrida Legal (June 23, 2024),
https://corridalegal.com/social-security-code-provisions-for-gig-and-platform-workers/.
6
Code on Social Security 2020 and Gig Workers, Drishti IAS (Aug. 2023), https://www.drishtiias.com/daily-
updates/daily-news-analysis/code-on-social-security-2020-and-gig-workers.
7
PRS Legislative Research, The Code on Social Security, 2020, https://prsindia.org/billtrack/the-code-on-social-
security-2020.
8
Ulka Bhattacharyya & Soumya Jha, Understanding Social Security for Gig Workers: Analyzing Recent
Developments, 11 NLIU L. Rev. 61 (2022), available at
https://nliulawreview.nliu.ac.in/wp-content/uploads/2022/02/3.-Understanding-Social-Security-for-Gig-
