Gig and platform workers under the Code on Social Security, 2020
The Code on Social Security, 2020, in force since 21 November 2025, is the first central law to define gig workers, platform workers and aggregators. Its section 114 lets the Centre frame schemes for them, which may draw on aggregators' contributions. The design of old age protection for these workers remains open.
Syllabus: GS3 · Indian Economy & Growth; Prelims · Economy & Social Development; GS2 · Government Policies
Why this matters for UPSC
GS2 welfare of vulnerable sections and GS3 employment. Prelims can ask the Code's definitions of gig worker and aggregator, section 114's benefit heads and the 1-2% contribution; Mains, how to protect workers outside the employer-employee relationship.
In short
The Code on Social Security, 2020 gives gig and platform workers legal identity, registration and section 114 schemes financed partly by aggregators, for work outside employer-employee relationships.
The Code has given gig workers legal standing; its worth now turns on notified schemes, a levy start date and pensions fitting task-based earnings.
Why it matters
A food-delivery rider who works for two apps has no employer paying into a provident fund or health insurance on the rider's behalf. If the rider is hurt on the road or grows too old to ride, the loss falls on the family. The Code lets the Centre build schemes for such workers and asks the platforms that earn from their work to share the cost. An Aadhaar-linked e-Shram account lets the benefits follow the worker from one app to another. How much it helps depends on the schemes the Centre notifies and on when the platforms start paying. The larger question is how a welfare system built around regular jobs reaches people paid by the task.
Prelims pointers
- Section 114(1): the Centre may frame schemes on life and disability cover, accident insurance, health and maternity benefits, old age protection, crèche and any other benefit.
- Section 114(3) funding routes: the Centre alone, Centre and States, aggregators alone, a mix with beneficiaries, CSR funds under the Companies Act, 2013, or any other source.
- Section 113: a worker registers at 16 years of age or above, on a self-declaration, with an application carrying the Aadhaar number, and gets a distinguishable number.
- Section 114(6): for gig and platform workers the Board takes five aggregator, five worker and five rotating State representatives; a Labour Ministry Joint Secretary is Member Secretary.
- The Code's own Seventh Schedule, not the Constitution's, lists nine aggregator classes, such as ride sharing, food and grocery delivery, logistics, e-marketplaces, healthcare, and content and media.
- Section 141: the Social Security Fund keeps a separate account for each source, one being aggregators' money under section 114(3); each State also sets up a fund for unorganised workers.
- Constitution: Entry 23 of the Concurrent List covers social security and social insurance; Article 41 asks the State to provide public assistance in old age, sickness and disablement.
- e-Shram, built by the National Informatics Centre: open to unorganised workers aged 16 or more who are not income-tax payers or EPFO or ESIC members; gives a 12-digit UAN.
Practise a UPSC-style question
With reference to the Code on Social Security, 2020, consider the following statements:
1. A gig worker is a person who earns from work arranged outside the traditional employer-employee relationship.
2. An aggregator is defined as a digital intermediary or market place connecting a user of a service with its provider.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Show the answer
Answer: (c) Both 1 and 2
Answer: (c) Both 1 and 2. Both lines restate the Code's own definitions in sections 2(35) and 2(2).
Statement 1: correct. Section 2(35) defines a gig worker as one who earns outside the traditional employer-employee relationship.
Statement 2: correct. Section 2(2) defines an aggregator as a digital intermediary or market place linking a buyer or user of a service with the seller or provider.
Eliminate: statement 1 is the core of the gig-worker definition, so it is correct. Out: (b), (d).
Eliminate: statement 2 matches section 2(2), so it is correct too. Out: (a).
Trap: Sounds right. Both statements read like textbook definitions, and a student unsure of the new terms may suspect one of them is invented.
Remember: Section 2(35) gig worker, 2(61) platform worker, 2(2) aggregator.
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