Ever since the Bigbaskets and the Zeptos joined the ranks of the Zomatos and the Swiggys, India’s unorganised gig economy has grown exponentially. The Code on Social Security 2020 brings them together under a formal safety umbrella. Now, the lakhs and lakhs of gig workers ( delivery agents) and platform workers will be formally recognised.
According to the new regulations, the Centre is mandated to frame suitable schemes, covering life, disability, health, and maternity benefits, specifically for these workers.
A dedicated National Social Security Fund is set to fund this, according to the regulation. Every gig or platform worker will have to register on a national portal and receive a portable, Aadhaar-verified Unique Identification Number, ensuring that welfare benefits follow them across state lines, regardless of migration.
Moreover, aggregators like Uber and Swiggy will now have to contribute 1–2 per cent of the annual turnover, capped at 5 per cent of the amount paid/payable to gig and platform workers.
Social security revolution
The Code on Social Security 2020 consolidated nine old labour welfare laws and came into effect on November 21, 2025. At the core of this regulation is India accepting its contract and gig workers as employees, on par with the permanent staff. It is a welcome change for many.
"I had no job guarantee while running for Swiggy. Now they say the new law will protect us. I am happy, and my parents can now be less worried," said Vinesh J, a 21-year-old gig worker in Kochi.
The social security code also tackles a key issue—commute accidents. Any accident that happens while commuting from your residence to the place of employment and vice versa will now be considered as having occurred "in the course of employment."
This means you and your family could be eligible for compensation or ESIC benefits if an injury or accident occurs during your daily travel.
Another major change is that the geographical restrictions on Employees’ State Insurance Corporation (ESIC) coverage are now removed.
But who all are eligible? Companies had earlier denied short-term contract or fixed-term employees (FTE) key employment benefits.
But the latest reforms fix this.
FTEs to receive all benefits equal to permanent workers, including leave, medical, and social security. Eligibility for gratuity is now just over one year, instead of five. This means equal wages as the permanent staff, increasing income, and protection.
"One-year contracts are anxiety-inducing. You have minimal benefits and no way of knowing you will be retained," added Rajesh N, 38, a content editor from Chennai, "This new labour law is a welcome change. At least, we get gratuity."
The social security code brought in a universal safety net, ensuring protection for all workers, whether they are salaried employees, daily wage earners, or independent gig workers. However, this is just a start.
