CarpeDiem IAS • CarpeDiem IAS • CarpeDiem IAS •

Gig workers and social security:

06 Jan 2026 GS 3 Economy
Gig workers and social security: Click to view full image

Context

  • A nationwide strike by gig workers (December 31) highlighted deep insecurity in app-based work.

  • Comes amid draft Central Rules to operationalise the new labour codes, released for public consultation.

  • Gig workers are partially included in the new framework.

Position of gig workers under labour codes

1. Code on Wages

  • Applies across sectors but excludes gig workers from the employer–employee relationship.

  • Platforms are not legally bound to ensure:

    • Minimum wages

    • Fair pay revisions

    • Transparency in incentives

  • Result: Issues like algorithmic rate cuts and opaque incentive structures remain outside legal scrutiny.

2. OSH&WC (Occupational Safety, Health and Working Conditions) Rules

  • Built on traditional employer compliance models (Shram Suvidha Portal).

  • Poor fit for app-mediated, algorithm-driven work.

  • Does not address:

    • Platform control through algorithms

    • Unilateral changes in work allocation

    • Digital surveillance and ratings-based penalties

Social security provisions for gig workers

Key features

  • Gig workers brought under social security framework only.

  • Mandatory registration on a portal by workers.

  • Aggregators must:

    • Upload worker details

    • Update records quarterly

Eligibility conditions

  • Minimum engagement:

    • 90 days with a single aggregator in a financial year, or

    • 120 cumulative days across aggregators

  • One calendar day can count as multiple days if earnings are made via multiple platforms.

Critical concerns with the draft Rules

1. Fragile eligibility thresholds

  • No protection for:

    • Illness

    • Maternity

    • Care-giving responsibilities

    • Demand slumps beyond workers’ control

  • A “bad quarter” can erase eligibility, reinforcing insecurity.

2. Platform-centric design

  • Rules do not constrain how platforms:

    • Organise work

    • Allocate tasks

    • Modify algorithms

  • Benefits depend indirectly on platform data and compliance.

3. Lack of clarity on benefits

  • Draft Rules do not specify:

    • Nature and minimum level of benefits

    • Dispute resolution mechanisms

    • Time-bound claims and appeals process

Recommendations

Making social security accessible and secure

  1. Eligibility safeguards

    • Explicit exemptions for illness, maternity, and demand collapse.

    • Continuity of coverage despite temporary work interruptions.

  2. Defined benefits

    • Clear specification of benefits supported by the Social Security Fund.

    • Minimum guaranteed benefits.

  3. Transparent grievance redressal

    • Independent, time-bound claims and appeals process.

    • Not dependent on aggregator goodwill.

  4. Data transparency

    • Mandatory periodic statements to workers covering:

      • Jobs performed

      • Hours logged

      • Earnings and deductions

    • Legal right to contest incorrect or irregular data.

Prelims practice MCQs

Q. With reference to gig workers under India’s new labour codes, consider the following statements:

  1. Gig workers are fully covered under the Code on Wages.

  2. Aggregators are legally required to ensure minimum wages for gig workers.

  3. Gig workers are included only under the social security framework.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 3 only
(c) 1 and 3 only
(d) 2 and 3 only

Answer: (b)

Explanation:

  • Gig workers are excluded from an employment relationship under the Code on Wages.

  • Platforms are not obligated to ensure minimum wages.

  • Inclusion is limited to social security provisions.



← Back to list