Now, Swiggy, Urban Company, Uber and other aggregators must contribute 1-2% of their annual turnover for gig workers' welfare

Gig worker

Aggregators will now be required to contribute 1-2 percent of their annual turnover towards gig and platform workers’ welfare, capped at 5 percent of the amounts paid or payable to workers.

This is the first time that the terms ‘gig worker’, ‘platform worker’, and ‘aggregator’ have been formally defined under Indian law.

According to the government, an Aadhaar-linked Universal Account Number (UAN) will be issued to gig and platform workers, making welfare benefits fully portable and accessible across states, irrespective of migration.

Code on Social Security

The Code on Social Security, 2020 defines gig workers as individuals earning outside a traditional employer-employee setup and makes them eligible for social security benefits such as healthcare, accident cover, maternity benefits and old-age protection.

The National Social Security Board is tasked with advising the Centre, framing and monitoring schemes for unorganised, gig and platform workers, and reviewing state-level records and fund utilisation.

Registration is mandatory for gig and platform workers above 16 years, based on self-declaration and Aadhaar, after which they can access scheme benefits. Governments may also set up helplines and facilitation centres to assist with registration and enrolment.

Aggregators must contribute 1-2 percent of annual turnover, capped at 5 percent of payments to gig and platform workers, towards a Social Security Fund. The Board will be expanded to include representatives of aggregators and gig workers when dealing with their welfare. The Fund will be used to finance central social security schemes for these workers.

States such as Karnataka and Telangana have already introduced similar welfare frameworks. Karnataka, meanwhile, notified Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025 on September 12. The Act mandates a welfare fee of 1-5 percent per transaction made by aggregator platforms to gig workers. It seeks to safeguard worker rights, improve platform accountability, and ensure transparency in automated decision-making systems. The law also provides for the creation of a Gig Workers Welfare Board and a Social Security and Welfare Fund, sourced from platform contributions, gig worker payments, and government grants. Administrative expenses are capped at 5 percent of the fund.

In Telangana, state cabinet recently approved the draft Telangana Gig and Platform Workers (Registration, Social Security and Welfare) Act, 2025. The policy is expected to cover over three lakh gig and platform workers engaged in transport, delivery, domestic services, and logistics, many of whom work seven days a week without social security.

The Centre, in a PIB release, announced that the four Labour Codes- the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020)-have come into effect from November 21, 2025. These Codes consolidate and rationalise 29 existing labour laws.

The government said the reforms modernise labour regulations, strengthen worker welfare, and align India’s labour ecosystem with global standards. Many of India’s labour laws date back to the 1930s-1950s and were unable to keep pace with new forms of work, creating compliance burdens and uncertainty for both workers and industries.

With the implementation of the new Labour Codes, the Centre said India is moving beyond colonial-era structures towards a future-ready workforce and resilient industries, supporting employment and labour reforms under Aatmanirbhar Bharat.