1. Introduction

India’s workforce has significantly transformed over the last decade. Millions of people now work outside traditional employment contracts — delivering food, driving taxis, offering freelance services, creating content, running micro-businesses, or doing piece-rate work in the informal sector.

The Social Security Code, 2020 acknowledges this shift and, for the first time in Indian legal history, introduces a formal framework for gig workers, platform workers, and unorganized sector workers under Chapter 9 (Sections 109–114) and Chapter 10 (Sections 115–126).

This is a landmark reform because earlier labour laws focused primarily on factory workers and formally employed staff. Gig workers and unorganized workers never had social security structures—no insurance, no pension, no predictable safety nets. The Code steps in to change this.

Hindi insight:

पहली बार भारत के श्रम कानूनों में gig workers, delivery riders, taxi drivers, freelancers, और अन्य असंगठित क्षेत्र के श्रमिकों को कानूनी पहचान और सामाजिक सुरक्षा अधिकार मिले हैं — यह अपने आप में एक ऐतिहासिक सुधार है।

2. Why This Reform Was Necessary

Traditional labour laws were designed decades ago, long before digital platforms, aggregator apps, remote gig work, and hyperlocal services existed. As a result:

• Gig workers were treated as self-employed, without any benefits
• Platform workers were misclassified and unsupported
• Unorganized workers lacked pension, insurance, or structured welfare
• No consistent database existed for these categories
• Employers/platforms had no clear responsibility

The Social Security Code recognizes that work has evolved, and social protection must evolve with it.

This reform is essential because India’s unorganized and gig workforce is over 90% of the total workforce — meaning the vast majority of workers were outside formal protection until now.

3. Who Are Gig Workers? (Section 109)

A gig worker is someone who earns from:

• short-term tasks,
• project-based engagements,
• on-demand work,
• flexible arrangements,
• with no fixed employer-employee relationship.

Examples include:

• Freelancers
• Designers, developers
• Home-service technicians
• On-demand helpers
• Part-time content creators
• Repair specialists

They operate independently, choosing who they work for and when.

Hindi explanation:

Gig worker वह होता है जो छोटे-छोटे काम या projects पर कमाता है, लेकिन उसका किसी एक employer से स्थायी संबंध नहीं होता।

4. Who Are Platform Workers? (Section 109)

A platform worker performs work using a digital platform or app that acts as an intermediary.

Examples:

• Uber, Ola drivers
• Swiggy, Zomato delivery partners
• Blinkit, Zepto gig delivery staff
• Urban Company service partners
• E-commerce delivery agents
• App-based cleaning, beauty, repair services

The platform controls allocation of tasks, rating systems, payments, and performance algorithms — but still does not treat workers as “employees.”

The Code gives platform workers recognition and access to welfare schemes for the first time.

5. Who Are Unorganized Workers? (Section 109)

An unorganized sector worker is someone employed in:

• small establishments (less than 10 employees), or
• self-employed, or
• engaged in home-based, piece-rate, or seasonal work.

Examples:

• Street vendors
• Auto rickshaw drivers
• Domestic workers
• Construction labourers
• Tailors, weavers
• Agricultural labourers
• Shop helpers
• Barbers, carpenters, plumbers

This is the largest category and the most vulnerable.

Hindi explanation:

असंगठित क्षेत्र के श्रमिक वे हैं जो छोटे दुकानों, घरों, खेतों या अपने साधनों से कमाते हैं — जिनके पास कोई औपचारिक सुरक्षा कवच नहीं होता।

6. Registration of Gig, Platform, and Unorganized Workers (Section 113)

The Code mandates:

• Aadhaar-based registration
• Self-certification of occupation
• Digital database on a national portal
• Mobile-friendly registration for easy onboarding

Workers must provide:

• Name
• Gender
• Occupation / nature of work
• Mobile number
• Aadhaar
• Address
• Category (gig / platform / unorganized)

This national database forms the backbone for future benefit delivery.

7. Welfare Schemes for Gig & Platform Workers (Sections 114–115)

For the first time, the government may frame schemes offering:

• Life insurance
• Accident insurance
• Disability cover
• Health and maternity benefits
• Old age protection (pension)
• Skill development programs
• Crisis support funds
• Credit and loan support
• Income security during emergencies

While the schemes are to be notified via later rules, the Code creates the legal foundation.

Funding Pattern Will Include:

• Central government contributions
• State government contributions
• Welfare funds
• Platform aggregators (like Uber, Zomato, Urban Company)
• Workers’ own small contributions

This is a shared responsibility model, not a purely employer-funded model.

8. Aggregators’ Contribution (Section 114)

(One of the most debated reforms)

The Code requires digital platform companies (called aggregators) to contribute towards a welfare fund for gig and platform workers.

Examples of aggregators:

• Ride-sharing apps
• Food delivery apps
• E-commerce delivery aggregators
• Online home service platforms
• Logistics platforms

Contribution Range:

1%–2% of annual turnover, capped at 5% of the total amount paid to gig/platform workers.

This ensures fairness—platform workers finally get long-term benefits without burdening them financially.

Hindi note:

Uber, Swiggy, Zomato जैसे प्लेटफ़ॉर्म अब gig workers के welfare fund में योगदान देंगे—यह बहुत बड़ा सुधार है।

9. Welfare Schemes for Unorganized Sector Workers (Sections 115–126)

The Code also enables:

• Ayushman Bharat health coverage
• PM-SYM pension scheme integration
• Life and disability insurance
• Housing support
• Educational support for children
• Financial support during illness
• Social security funds at state and central level

Unorganized workers may also join contributory schemes (like pension) with matching government contributions.

10. Migrant Workers Under the Code (Section 127–129)

Inter-state migrant workers are often the most exploited.

The Social Security Code provides:

• Portability of benefits
• National database registration
• Journey allowance
• Equal treatment with local workers
• Access to skill and social security schemes
• Tracking via Aadhaar and mobile numbers

This dramatically improves their welfare.

11. Role of Aadhaar and Digital Portals (Section 113)

Aadhaar is central for:

• Identity verification
• Preventing duplicate registrations
• Seamless benefit portability
• Linking bank accounts
• Mobile-friendly communication

This makes the system future-ready.

12. Challenges the Code Aims to Solve

The Code tries to overcome decades-old issues:

• No formal recognition of gig work
• Lack of employer accountability
• No digital registry of workers
• No entitlement to basic benefits
• Misclassification of workers
• Fragmented welfare schemes
• No portability across states or platforms

By legally defining these categories, the Code creates clarity, rights, and pathways for benefits.

13. Benefits for Workers

Gig, platform, and unorganized workers will gain:

• Identity and legal recognition
• Access to insurance, healthcare, and pension
• Higher financial stability
• Protection against income loss
• Accident and disability coverage
• Access to government welfare with minimal paperwork

This is transformative for workers who previously had no safety net.

14. Impact on Aggregators & Platforms

Platforms must now:

• Maintain worker databases
• Share data with authorities
• Contribute to social security funds
• Participate in welfare schemes
• Ensure fair algorithmic practices (in future rules)

This increases accountability but also legitimizes gig work as a recognized workforce category.

15. FAQs (With Chapter References)

FAQ 1: Are gig workers treated as employees under the Code?

No. They are recognized as a separate category with their own welfare structure.

Relevant: Section 109

FAQ 2: Will platform companies pay for social security?

Yes, contributions are mandatory within the 1%–2% turnover range.

Relevant: Section 114

FAQ 3: Can gig workers get pension or insurance?

Yes, depending on the schemes notified by the government.

Relevant: Sections 114–115

FAQ 4: How do unorganized workers register?

Through an Aadhaar-based national portal with self-declaration.

Relevant: Section 113

FAQ 5: Will migrant workers get portability of benefits?

Yes. Benefits will move with them across states.

Relevant: Sections 127–129

16. Conclusion

The inclusion of gig workers, platform workers, and unorganized workers in the Social Security Code, 2020 is a historic and forward-looking reform. For the first time, India recognizes the changing nature of work and builds a legal foundation for millions who were previously invisible to labour laws.

By establishing digital registration, aggregator contributions, state and central welfare schemes, and Aadhaar-linked benefit delivery, the Code dramatically expands social protection.

This transforms gig and unorganized work from an insecure, informal system into a structured framework where workers finally receive recognition, dignity, and security.