With the implementation of India’s new labour codes, millions of gig and platform workers have for the first time been formally acknowledged under law.
However, gig-worker unions say the new law’s recognition of gig workers is only half the battle, as without defined social security and insurance provisions, platform workers remain exposed. They argue that the law falls short of ensuring real, enforceable social security, and are demanding concrete welfare benefits before the reform remains merely symbolic.
What are unions demanding?
Unions representing gig and platform workers, particularly the Indian Federation of App-Based Transport Workers (IFAT), have been pushing the government to operationalise the welfare provisions under the Code on Social Security, 2020. They argue that while the code formally recognises gig workers for the first time, more than two crore app-based workers -- cab drivers, delivery personnel and home-service providers -- still lack any real safety net. Without functional schemes, they say, recognition remains largely symbolic.
Their central demand is the immediate creation of a national welfare board for gig and platform workers to design, notify and deliver benefits. Unions also want strict enforcement of the aggregator contribution (cess) to the welfare fund, insisting it be transparently collected and ring-fenced for worker benefits.
Additionally, unions are pushing for gig workers to be integrated into existing social-security systems like EPFO and ESIC, which already have nationwide infrastructure to deliver benefits efficiently. Some groups have even called for a dedicated “Gig and Platform Workers Act” to address sector-specific challenges.
Why are they unhappy with current law/implementation?
Even though the Code on Social Security recognises gig and platform workers and outlines benefits such as accident, disability and health insurance, unions say not a single scheme has been implemented five years on. The welfare fund -- meant to be financed through a 1–2 percent aggregator contribution -- is still not operational in many states, and low worker registration on the government portal means most will be ineligible when schemes eventually roll out. Meanwhile, everyday problems such as unstable earnings, sudden deactivations and opaque algorithms remain unaddressed. With other labour codes offering little protection, unions argue that social security exists only on paper.
What concrete changes unions want now
Unions are now urging the government to move from intent to implementation by immediately notifying and operationalising welfare schemes under the Code on Social Security. They say a national welfare board for gig and platform workers is essential to design schemes, oversee rollout, and ensure aggregator contributions translate into real benefits.
They also want workers’ representatives included in scheme design, arguing that policies without on-ground input often overlook irregular hours, algorithmic controls and fluctuating earnings. Unions are pushing for the use of existing institutions like EPFO and ESIC to speed up delivery, instead of creating new systems.
Another key demand is stricter obligations on aggregators -- transparent reporting of contributions, clear disclosures on payments to workers, proper utilisation of the welfare cess, and defined service standards such as minimum payouts, accident and health benefit triggers, fair grievance redressal and algorithmic transparency.
Unions also stress the need for uniform implementation across states to prevent uneven protection. Some are additionally pushing for gig workers to be recognised as employees or at least a hybrid category to secure rights beyond welfare, including safeguards against arbitrary deactivation and sudden changes to pay.
Why now, and what triggered the renewed push from unions
The recent notification of the labour codes in November 2025 which, for the first time, formally recognised gig and platform workers as a distinct category, has given unions a concrete policy hook to push for long-pending protections.
However, in the absence of actual schemes on the ground, no operational welfare board, no activated social security fund, and no defined benefit structures, millions of gig workers remain effectively unprotected. This implementation vacuum has intensified unions’ demands for immediate action.
What’s at stake if benefits are not delivered, and why unions are worried
Without a functioning welfare fund or operational schemes, gig workers continue to face accidents, health emergencies and sudden loss of work with no safety net. The precarious nature of gig work -- no fixed salary, stable hours or formal employer -- means the absence of pension support, insurance or basic safety cover leaves them highly vulnerable.
Their classification as "independent contractors" also allows platforms to shift risks onto workers while avoiding responsibilities tied to formal employment. Unions warn that if welfare measures remain stalled, it will erode trust in the policy meant to protect gig workers and widen the gap between formal employees and those in on-demand work.
What are insurance companies saying?
Insurers say the delay in operationalising welfare schemes is blocking meaningful progress.
Insurers said, “The industry already has products tailored for high-risk, low-premium segments, but we need a clear government framework to anchor them. Until the welfare fund and contribution rules are actually implemented, large-scale accident or health cover for gig workers simply cannot take off.”
Some companies warn that the window of opportunity is closing.
“This is one of the largest uninsured workforce segments in India,” a senior insurance official noted. “If scheme design and funding mechanisms don’t move quickly, we risk losing momentum, and workers will continue to remain without basic protection.”
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