Gig and Platform Workers: What Aggregators Now Owe
The Code on Social Security brings gig and platform workers into India's social security net for the first time. Here is what aggregators are now expected to provide.
If your business runs a digital platform that connects gig or platform workers with customers, the Code on Social Security now places you, the aggregator, at the centre of a new welfare obligation.
Key facts at a glance
- The Code on Social Security, 2020 is one of the four Labour Codes that came into force nationally on 21 November 2025.
- It formally defines and recognises gig workers and platform workers as categories distinct from traditional employees.
- Aggregators - the digital platforms connecting workers with customers - carry new social security obligations under the framework.
- A contribution mechanism from aggregators toward worker welfare schemes is enabled by the Code, with exact rates set through rules, not fixed in the Code itself.
- Gig and platform worker status does not convert them into employees with full employer-employee rights.
- Final Central rules were expected around April 2026, and states must also notify their own rules before the framework is fully operational everywhere.
Why gig workers needed a separate legal category
India's traditional labour law framework was built around a clear employer-employee relationship, which does not map cleanly onto how ride-hailing, delivery, and freelance-marketplace platforms actually engage workers. Gig workers typically have flexible hours, work across multiple platforms, and are not treated as employees of any single platform under existing contracts.
The Code on Social Security addresses this gap by creating a dedicated category for gig and platform workers, with its own welfare mechanism, rather than trying to force platform work into the old employment mould.
What "aggregator" means and who it covers
An aggregator, in this context, is a digital intermediary that connects a buyer of a service with a seller or provider of that service through an online platform or network. This definition is broad enough to capture ride-hailing apps, food and grocery delivery platforms, home-services marketplaces, and various freelance or task-based platforms, though the precise scope for any given business model should be checked against the specific rules as they are finalised.
What aggregators are now expected to provide
Financial contribution toward welfare schemes
The Code enables a contribution from aggregators, potentially linked to their turnover or the value of transactions involving gig and platform workers, to be directed toward social security schemes. The precise percentage, calculation method and payment mechanism are matters for rules and scheme notifications, which businesses should track closely rather than assume are already fixed.
Support for worker registration
A broader push toward registering unorganised, gig and platform workers on a central system has been part of the social security architecture, and aggregators are likely to be expected to facilitate this registration process for workers on their platform.
Scheme-linked benefits, not blanket employee benefits
Unlike PF or ESI for regular employees, the benefits contemplated for gig and platform workers - such as accident cover, life and disability protection, and health or maternity benefits - are designed through specific notified schemes, rather than being an automatic extension of existing employee benefit structures.
Comparing gig worker coverage with regular employee coverage
| Aspect | Regular employees | Gig / platform workers |
|---|---|---|
| Legal category | Employer-employee relationship | Distinct gig/platform worker category |
| Core social security mechanism | EPF, ESI (employer + employee contribution) | Aggregator contribution toward notified welfare schemes |
| Who contributes | Employer and employee | Aggregator (mechanism and rate via rules) |
| Employment rights (leave, notice, etc.) | Full statutory employee rights | Not automatically extended |
| Registration | Employer-driven, via EPFO/ESIC | Central registration push for unorganised/gig workers |
What aggregator businesses should do now
Map every category of worker your platform engages and confirm whether they fall within the gig or platform worker definition under the Code. Track both central rule notifications and your operating states' individual rule status, since the contribution mechanics are not yet fully settled everywhere. Build a placeholder line item into financial planning for the anticipated contribution obligation, even before exact rates are notified, so the eventual requirement is not a budget shock.
If you are not sure how the Labour Codes affect your platform's obligations toward gig or platform workers, ComplianceCheck's labour code assessment gives you a clear picture in a few minutes.
Sources
- Ministry of Labour and Employment - labour.gov.in
- Employees' Provident Fund Organisation - epfindia.gov.in
- Employees' State Insurance Corporation - esic.gov.in
This guide is general information, not legal advice. Requirements vary by state, sector and headcount - confirm specifics with a compliance professional or the relevant authority.
Frequently Asked Questions
- Are gig and platform workers now covered by labour law in India?
- Yes, the Code on Social Security, 2020, formally recognises gig workers and platform workers as distinct categories and brings them within scope of social security schemes for the first time, separate from the traditional employer-employee framework.
- Who counts as an aggregator under the Code?
- An aggregator is a digital intermediary or marketplace that connects buyers and sellers of a service, such as ride-hailing, delivery, or freelance work platforms, and it is this aggregator that carries new social security obligations toward the gig and platform workers using its platform.
- Do aggregators have to pay a percentage of revenue toward worker welfare?
- The Code on Social Security enables a contribution mechanism from aggregators toward social security schemes for gig and platform workers, with specific rates and mechanics to be prescribed through central and state rules rather than fixed directly in the Code itself.
- Does this make gig workers employees of the aggregator?
- No, gig and platform workers remain a distinct legal category from employees, so this does not convert them into regular employees with the full set of employer-employee rights, but it does create new welfare obligations specific to their category.
- What kind of social security benefits are gig workers expected to get?
- The framework contemplates schemes covering areas such as life and disability cover, accident insurance, health and maternity benefits, and old-age protection, to be designed and notified through specific social security schemes rather than automatically applying existing employee schemes.
- Is this obligation already enforceable for aggregators?
- The Code on Social Security is nationally in force from 21 November 2025, but the specific schemes, contribution rates and registration mechanisms depend on rules and scheme notifications that are still being finalised, so aggregators should track both central and state-level developments.
- Should aggregators register gig workers on a government portal?
- A central registration mechanism for unorganised, gig and platform workers has been part of the broader social security architecture, and aggregators should expect obligations to facilitate or support worker registration as the rules are finalised.
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Readiness assessment for India's 4 new Labour Codes (Wages, Social Security, OSH, Industrial Relations), with implementation cost estimates.