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Are gig workers a part of India’s labour data?

Are gig workers a part of India’s labour data?

The gig economy represents one of the most significant structural transformations in India’s labour market, yet millions of gig workers remain statistically invisible in official data. The 2025 Union Budget’s recognition of platform-based gig workers, combined with ongoing debates about labour classification, makes this a highly relevant topic for UPSC aspirants preparing for General Studies Paper I (society and social issues), Paper II (governance and social justice), and Paper III (Indian economy, employment, and inclusive growth). This article provides a comprehensive analysis of gig work in India, the gaps in labour data, the evolving legal framework, and the way forward for inclusive policy-making.

What is Gig Work? Understanding the Definitions

The term “gig work” refers to work arrangements where individuals perform short-term tasks, assignments, or projects rather than holding permanent employment under a single employer. The word “gig” originates from the music industry, where musicians would perform individual shows or engagements. In the contemporary economic context, it has come to represent an entire ecosystem of flexible, on-demand, and often technology-mediated work.

The Code on Social Security, 2020 provides India’s first statutory definition of a gig worker as “a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship.” A platform worker is further defined as a worker who accesses other organisations or individuals through an online platform to provide specific services in exchange for payment.

Types of Gig Work

Gig work can be broadly categorised into two types:

CategoryDescriptionExamples
Platform-Based Gig WorkWork mediated through digital platforms or apps that connect service providers with consumersZomato/Swiggy delivery partners, Uber/Ola drivers, Urban Company service professionals, Blinkit delivery agents
Non-Platform Gig WorkFreelance or contract work that exists outside of digital platforms, often in traditional sectorsFreelance consultants, contract workers in construction, part-time tutors, seasonal agricultural labourers
Digital/Remote Gig WorkTechnology-enabled work performed remotely, often across geographical boundariesUpwork freelancers, Fiverr service providers, freelance writers, graphic designers, software developers on contract

The distinction between these categories matters enormously for policy-making. Platform-based gig workers are more easily identifiable because platforms maintain digital records of their engagement. Non-platform gig workers, on the other hand, often overlap with the broader informal economy and are far harder to enumerate or regulate.

Growth of the Gig Economy in India

India’s gig economy has witnessed explosive growth over the past decade, driven by a combination of technological advancement, demographic shifts, and economic necessity. Understanding the scale and trajectory of this growth is essential for UPSC aspirants, as it intersects with questions on employment, urbanisation, digital India, and economic planning.

NITI Aayog’s Landmark Report (2022)

In June 2022, NITI Aayog released the report titled “India’s Booming Gig and Platform Economy”, which remains the most comprehensive official assessment of the sector. The key findings include:

  • In 2020-21, approximately 77 lakh (7.7 million) workers were engaged in the gig economy.
  • The gig workforce is expected to expand to 2.35 crore (23.5 million) workers by 2029-30.
  • Gig workers constituted 2.6% of the non-agricultural workforce or 1.5% of the total workforce in 2020-21.
  • By 2029-30, gig workers are expected to form 6.7% of the non-agricultural workforce or 4.1% of the total livelihood workforce.
  • About 47% of gig work is in medium-skilled jobs, 22% in high-skilled jobs, and 31% in low-skilled jobs.

Sector-Wise Distribution

The gig economy in India is not limited to food delivery and ride-hailing. The NITI Aayog report reveals a broad sector-wise distribution:

SectorShare of Gig WorkersKey Activities
Retail Trade and Sales~27%E-commerce delivery, last-mile logistics
Transportation and Storage~13%Ride-hailing, freight logistics
Manufacturing~12%Contract-based production work
Finance and Insurance~7%Freelance advisory, digital lending agents
Construction~5%Project-based construction labour
Others (IT, Education, Healthcare)~36%Freelance coding, online tutoring, telemedicine

Key Drivers of Growth

1. Smartphone Penetration and Digital Infrastructure: India has over 750 million smartphone users, and the expansion of affordable mobile data (catalysed by Reliance Jio’s entry in 2016) has created the digital infrastructure necessary for platform-based work. The India Stack ecosystem, including UPI payments, has further enabled seamless transactions between platforms, workers, and consumers.

2. COVID-19 Pandemic: The pandemic served as an inflection point for the gig economy. Lockdowns accelerated demand for delivery services, while simultaneous job losses in the formal sector pushed millions of workers toward platform-based employment. The pandemic demonstrated both the essential nature of gig work and the vulnerability of gig workers who lacked any social safety net.

3. Startup Ecosystem: India’s vibrant startup ecosystem, particularly in food-tech (Zomato, Swiggy), mobility (Ola, Uber), e-commerce (Amazon, Flipkart), and home services (Urban Company), has created millions of platform-based gig opportunities. As of 2024, India has over 100 unicorn startups, many of which rely heavily on gig workers for service delivery.

4. Demographic Dividend and Youth Aspirations: With a median age of approximately 28 years and millions of young people entering the workforce annually, gig work offers an accessible entry point. For many, it provides income while they seek formal employment or pursue higher education.

5. Urbanisation and Consumer Demand: Rapid urbanisation has created dense consumer markets that are ideal for platform-based services. The rise of the convenience economy, where urban consumers expect on-demand delivery of food, groceries, and services, has directly fuelled demand for gig workers.

Legal Framework Governing Gig Workers in India

The legal recognition of gig workers in India is a relatively recent development. For decades, India’s labour laws were designed around the binary of employer-employee relationships, leaving gig workers in a regulatory vacuum. The evolving legal framework represents a critical area for UPSC aspirants, particularly for GS Paper II (governance) and GS Paper III (labour and employment).

The Code on Social Security, 2020: A Watershed Moment

The Code on Social Security (SS Code), 2020, passed by the Lok Sabha on 22 September 2020 and by the Rajya Sabha on 23 September 2020, represents the first time gig and platform workers have been formally recognised in Indian labour legislation. The SS Code is one of four labour codes that subsume and consolidate 29 existing central labour laws.

Key provisions relevant to gig workers:

  • Statutory Definitions: Sections 2(35) and 2(61) define “gig worker” and “platform worker” respectively for the first time in Indian law. An “aggregator” is defined as a digital intermediary or marketplace that connects buyers or users with service providers.
  • Social Security Fund: Sections 113 and 114 mandate the creation of a Social Security Fund for unorganised workers, gig workers, and platform workers. The Central Government is empowered to frame social security schemes covering life insurance, disability insurance, health and maternity benefits, provident fund, and old-age protection.
  • Aggregator Contribution: Aggregators are required to contribute 1-2% of their annual turnover, capped at 5% of the amount paid or payable to gig and platform workers, to the Social Security Fund.
  • Registration: Every gig worker and platform worker is to be registered on a portal developed by the Central Government, which shall serve as a database for administering benefits.
  • State-Level Funds: State governments are also empowered to set up and administer separate social security funds for unorganised workers within their jurisdiction.

“For the first time in the country, social security benefits have been extended to unorganised, gig and platform workers under Sections 113 and 114 of the Code on Social Security, 2020.”

Press Information Bureau, Government of India

Critical Assessment: While the SS Code is a landmark legislation, it has several limitations. The rules under the Code have not been fully notified as of 2025, leaving much of its implementation in limbo. The Code does not establish an employer-employee relationship between platforms and gig workers, which means that many protections available to formal employees, such as minimum wage guarantees, paid leave, and protection against unfair dismissal, remain inapplicable to gig workers.

Rajasthan Platform-Based Gig Workers Act, 2023

Rajasthan became the first Indian state to enact dedicated legislation for platform-based gig workers with the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023, passed in July 2023. This Act goes significantly further than the central SS Code in several respects:

  • Mandatory Registration: All platform-based workers and aggregator platforms must be registered. Each registered worker receives a unique ID that remains valid across all platforms, enabling tracking of work history and entitlements.
  • Welfare Board: The Act mandates the creation of the “Rajasthan Platform-Based Gig Workers Welfare Board” to oversee implementation and administer welfare schemes.
  • Platform Welfare Cess: A “Platform-Based Gig Workers Welfare Cess” is levied as a percentage of each transaction on aggregator platforms, which is deposited into a welfare fund.
  • Grievance Redressal: A two-tiered grievance mechanism is established, requiring platforms to first set up Internal Dispute Resolution Committees.
  • Penalties: Aggregators that fail to pay the welfare fee on time face interest charges of 12% per annum. Fines of up to Rs 5 lakh for the first contravention and up to Rs 50 lakh for subsequent violations can be imposed.

The Rajasthan Act is significant as a model that other states can adopt and adapt. However, its implementation has faced challenges, including resistance from platform companies and questions about its applicability following changes in the state government.

Judicial Developments

Indian courts have begun engaging with the question of gig worker classification, though no definitive Supreme Court ruling has yet established employment status for platform workers. Globally, the landmark UK Supreme Court ruling in Uber BV v. Aslam (2021) held that Uber drivers were “workers” rather than independent contractors, entitling them to minimum wage and holiday pay. Indian courts have observed the need for greater protection of gig workers but have largely deferred to legislative action.

The PLFS Problem: Why Gig Workers Are Statistically Invisible

One of the most critical challenges in formulating evidence-based policy for gig workers is their statistical invisibility in India’s primary labour data source, the Periodic Labour Force Survey (PLFS). This is a crucial analytical point for UPSC, as it connects data governance with social justice and economic policy.

How the PLFS Classifies Workers

The PLFS, conducted by the National Statistical Office (NSO), classifies workers into the following broad categories based on their employment status:

  1. Self-Employed: This includes own-account workers (who operate enterprises without hiring workers), employers, and unpaid family workers (helpers in household enterprises).
  2. Regular Wage/Salaried Employees: Persons working in others’ farm or non-farm enterprises and getting salary or wages on a regular basis.
  3. Casual Labour: Persons casually engaged in others’ enterprises and getting wages according to the terms of the daily or periodic work contract.

Why Gig Workers Fall Through the Cracks

The problem is that gig workers do not fit neatly into any of these categories. A food delivery partner working for Zomato and Swiggy simultaneously is not “self-employed” in the traditional sense (they do not own or control the business), nor are they a “regular salaried employee” (they have no employment contract, no fixed salary, and no benefits). They are not “casual labour” either, as that category traditionally refers to daily wage workers in agriculture or construction.

The result is that gig workers are subsumed under broad categories like “own-account workers” or “casual labour,” where their distinctive characteristics, including multiple platform employment, dependence on algorithmic management, income volatility, and absence of employment contracts, remain entirely unreported.

In response to a Rajya Sabha query on whether the government had updated PLFS methodology to capture the rise of gig work, the Ministry of Statistics and Programme Implementation stated: “No updation in the PLFS Schedule has been undertaken with the objective of specifically identifying persons engaged in the gig economy.”

Ministry of Statistics and Programme Implementation, Government of India

Consequences of Statistical Invisibility

The absence of a distinct classification for gig workers has far-reaching policy consequences:

  • Underestimation of Workforce Size: Without dedicated categories, the true scale of gig work is unknown, making it impossible to allocate appropriate budgetary resources for social security.
  • Exclusion from Welfare Schemes: Workers who are not accurately classified cannot be targeted by welfare programmes, leading to exclusion errors.
  • Invisible Working Conditions: Issues specific to gig work, such as algorithmic wage determination, lack of rest periods, safety risks during delivery, and the absence of workplace injury coverage, are not captured in any official survey.
  • Undermined Policy-Making: Evidence-based governance requires accurate data. The absence of granular gig work data means that policies are designed on estimates and projections rather than empirical evidence.

ILO Recommendations on Statistical Classification

The International Labour Organization (ILO) has repeatedly called for updating national labour force surveys to capture new forms of work. The 20th International Conference of Labour Statisticians (ICLS), 2018, adopted new standards on work relationships that recognise “dependent contractors” as a distinct category, separate from both employees and independent workers. The ILO recommends that countries introduce questions in their labour force surveys that identify:

  • Whether work is mediated by a digital platform
  • The degree of control exercised by the platform over work processes
  • Whether the worker has access to social protection
  • The regularity and predictability of income

India’s failure to incorporate these recommendations into the PLFS represents a significant gap in its statistical infrastructure.

Global Comparison: How Other Countries Handle Gig Worker Classification

Understanding how other major economies approach gig worker classification is essential for comparative analysis in UPSC answers. The global landscape reveals diverse approaches, each with lessons for India.

United States: Bureau of Labor Statistics (BLS) Approach

The US Bureau of Labor Statistics conducts the Contingent Worker Supplement (CWS) as part of the Current Population Survey (CPS). Notably, the BLS does not officially define “gig economy” or “gig workers.” Instead, it classifies workers into:

  • Contingent Workers: People who do not expect their jobs to last or whose jobs are temporary.
  • Alternative Employment Arrangements: Independent contractors, on-call workers, and workers provided by temporary help agencies.
  • Electronically Mediated Workers: A category added in 2017 specifically for workers who use websites or apps to connect with clients for short tasks or projects.

The addition of the “electronically mediated workers” category in the 2017 CWS is significant, as it represents an attempt to capture platform-based work within official statistics. However, the survey found that only about 1% of American workers identified as electronically mediated, a figure many researchers consider an undercount due to survey design issues. The CWS is not conducted regularly (surveys were done in 1995, 1997, 1999, 2001, 2005, and 2017), which limits its usefulness in tracking a rapidly evolving sector.

European Union: Platform Work Directive, 2024

The EU took the most decisive regulatory step globally with the Platform Work Directive, which entered into force on 1 December 2024. EU member states have until 2 December 2026 to transpose the Directive into national law. Its key features include:

  • Presumption of Employment: The Directive establishes a legal presumption that the relationship between a platform and a worker is an employment relationship when facts indicate control and direction. The burden of proof lies on the platform to demonstrate otherwise.
  • Algorithmic Transparency: Platforms must inform workers about how automated systems are used in decision-making, including task allocation, earnings, and deactivation.
  • Human Oversight: Significant decisions (such as account suspension or termination) must involve human review.
  • Scope: The Directive affects an estimated 28.3 million platform workers across the EU.

The EU approach is notable because it shifts the default assumption: instead of treating platform workers as independent contractors unless proven otherwise, it presumes employment status. This is a radical departure from the Indian approach, where gig workers are explicitly defined as being outside the traditional employer-employee relationship.

United Kingdom: The Taylor Review (2017)

The UK’s approach was shaped by the Taylor Review of Modern Working Practices (2017), conducted against the backdrop of the landmark Uber BV v. Aslam case. The Taylor Review recommended:

  • A three-tier classification: employees, dependent contractors (renamed from “workers”), and self-employed.
  • Greater emphasis on control as a factor in determining employment status, applying the principle that “if it looks and feels like employment, it should have the status and protection of employment.”
  • Extension of basic employment rights (minimum wage, holiday pay, sick pay) to “dependent contractors.”

The UK Supreme Court’s unanimous 2021 ruling in the Uber case confirmed that Uber drivers are “workers” entitled to minimum wage and holiday pay, reinforcing the Taylor Review’s direction.

Comparative Summary

Country/RegionClassification ApproachKey FeatureStatus of Implementation
IndiaGig workers defined as outside employer-employee relationshipSocial Security Fund via aggregator contributionsCode notified but rules largely unimplemented
United States“Electronically mediated workers” category in CWSNo federal presumption of employment; state-level variationPeriodic surveys; no permanent classification
European UnionPresumption of employment under Platform Work DirectiveBurden of proof on platforms; algorithmic transparencyDirective in force; national transposition by Dec 2026
United KingdomThree-tier model (employee, dependent contractor, self-employed)Control-based test; “dependent contractor” categoryReinforced by Uber Supreme Court ruling (2021)

Social Security Challenges Faced by Gig Workers

The absence of an employer-employee relationship means that gig workers in India are excluded from nearly all traditional social security mechanisms. This represents a fundamental gap in India’s social protection architecture, one that is particularly significant given that India already has one of the lowest social spending levels among G20 nations.

Healthcare

Gig workers have no access to employer-provided health insurance. Unlike formal sector employees who are covered under the Employees’ State Insurance (ESI) Act, gig workers must bear the full cost of healthcare from their own earnings. This is especially problematic for delivery workers and ride-hailing drivers who face significant occupational health risks, including road accidents, exposure to extreme weather, and musculoskeletal disorders from prolonged riding or driving. Studies have shown that delivery workers in Indian cities work an average of 10-14 hours per day, often without rest breaks, leading to chronic health issues.

Insurance and Accident Coverage

While some platforms offer limited accident insurance (typically covering death and permanent disability during active delivery), coverage is often inadequate, difficult to claim, and contingent on the worker being “on-task” at the time of the incident. Injuries sustained while commuting to a pick-up point or waiting for orders typically receive no coverage. There is no equivalent of the Employees’ Compensation Act protection for gig workers.

Pension and Old-Age Protection

Gig workers have no access to the Employees’ Provident Fund (EPF) or any employer-matched retirement savings scheme. Given that most gig workers are young (the majority are between 18 and 35 years old), the absence of pension contributions during their working years will create a massive old-age vulnerability crisis in the coming decades. The Code on Social Security, 2020 envisions old-age protection schemes, but these remain unimplemented.

Maternity and Parental Benefits

Women gig workers are entirely excluded from the Maternity Benefit Act, 1961, which applies only to establishments with 10 or more employees. For women working as delivery partners, beauticians on Urban Company, or domestic workers through platforms, pregnancy means a complete loss of income with no maternity leave, no health coverage for childbirth, and no job protection. This disproportionately affects women’s participation in the gig economy and reinforces gender inequities in the labour market.

Income Volatility and the Minimum Wage Gap

Gig workers are not covered under the Minimum Wages Act. Their earnings are determined by platform algorithms that can change payment structures unilaterally, without notice or negotiation. Surge pricing, incentive structures, and per-task payment rates create extreme income volatility. Reports indicate that average monthly earnings for food delivery workers in India range from Rs 10,000 to Rs 15,000, which is often below the minimum wage threshold in many states when calculated on an hourly basis, especially after accounting for fuel costs, vehicle maintenance, and smartphone expenses that workers must bear themselves.

Union Budget 2025-26: Measures for Gig Workers

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, marked a significant policy shift by formally recognising and announcing specific measures for platform-based gig workers. This was the first time a Union Budget explicitly addressed the gig economy.

Key Announcements

  • Identity Cards and e-Shram Registration: Gig workers will be issued identity cards and registered on the e-Shram portal, the national database for unorganised workers. This is foundational because without identification and registration, gig workers cannot be targeted for welfare benefits.
  • PM Jan Arogya Yojana (PMJAY) Coverage: Gig workers will be provided healthcare coverage under PMJAY (Ayushman Bharat), which offers free treatment for serious illnesses with coverage of up to Rs 5 lakh per family per year. This extends the world’s largest government-funded health insurance scheme to the gig workforce.
  • Record Budget Allocation: The government allocated Rs 32,646 crore for the Ministry of Labour and Employment for 2025-26, representing an 80% increase over the previous year.
  • Employment-Linked Incentive (ELI) Scheme: Funding for the ELI scheme was doubled from Rs 10,000 crore to Rs 20,000 crore, though this is aimed more broadly at employment generation rather than specifically at gig workers.
  • Pilot Registration: Four leading aggregators, Urban Company, Zomato, Blinkit, and Uncle Delivery, had already begun registering workers as part of a pilot initiative.

Analysis: Is It Enough?

While the Budget 2025 measures represent welcome progress, a critical assessment reveals significant gaps:

  1. Healthcare but Not Comprehensive Social Security: PMJAY coverage addresses hospitalisation costs but does not cover outpatient care, occupational health issues, or preventive healthcare. It does not replace the need for a comprehensive social security package including pension, disability insurance, and maternity benefits.
  2. Registration is Necessary but Not Sufficient: Identity cards and e-Shram registration are enabling steps, but they do not confer employment rights or guarantee minimum income. Registration without substantive entitlements risks becoming a data collection exercise rather than a welfare intervention.
  3. No Regulatory Framework for Working Conditions: The Budget did not address algorithmic wage-setting, maximum working hours, safety standards for delivery workers, or the right to collective bargaining. These remain unregulated.
  4. Implementation Challenge: The Code on Social Security, 2020, which provides the legislative basis for gig worker welfare, remains largely unimplemented. Budget announcements without corresponding implementation of the Code risk remaining on paper.
  5. Scale vs. Scope: The measures target an estimated 1 crore (10 million) gig workers, but the NITI Aayog projects 2.35 crore gig workers by 2029-30. The framework needs to be scalable and future-proof.

UPSC Previous Year Questions: Building Your Answer Framework

The topic of gig work, informal labour, and social security has been consistently tested in UPSC Civil Services Examinations. Understanding the pattern of questions can help aspirants prepare more effectively. Here are some relevant previous year questions:

Directly Relevant PYQs

YearPaperQuestion
2024GS3“Define the concept of the gig economy and discuss its impact on the labour market and workers’ social security net.”
2023GS1“Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.”
2020GS3“Discuss the new labour codes and their impact on formal and informal labour in India.”
2019Sociology Paper I“What is informal labour? Discuss the need for and challenges in regulating informal labour in the post-industrial society.”

Thematically Connected PYQs

YearPaperQuestion Theme
2021GS1Challenges in establishing gender equality in the informal sector
2020SociologyCapitalism and the increasing informalisation of work
2016SociologyGlobalisation pushing labour into informal organisation of work

How to approach these questions: When writing answers on the gig economy or informal labour, aspirants should demonstrate an understanding of (a) the definitional and statistical challenges, (b) the constitutional and legislative framework (Article 41, 42, 43 of the Directive Principles; SS Code 2020), (c) specific data points from the NITI Aayog report, and (d) a comparative global perspective. Use the EU Platform Work Directive and the UK Taylor Review as comparative examples. Always end with actionable policy recommendations that balance worker protection with economic flexibility.

Way Forward: Policy Recommendations

Addressing the challenges of the gig economy requires a multi-pronged approach that balances the need for worker protection with the flexibility that defines gig work. The following recommendations draw from domestic debates, international best practices, and expert committee suggestions.

1. Update the PLFS Methodology

The most immediate step is to introduce a dedicated category for gig and platform workers in the PLFS questionnaire. Following ILO recommendations from the 20th ICLS, the survey should include questions on platform-mediated work, degree of algorithmic control, access to social protection, and income regularity. Without accurate data, no evidence-based policy is possible. The Ministry of Statistics and Programme Implementation should constitute an expert committee to redesign the PLFS schedule.

2. Implement the Code on Social Security, 2020

The SS Code provides the legislative foundation, but its provisions for gig workers remain largely on paper. The Central Government must expedite the notification of rules under Sections 113 and 114, operationalise the Social Security Fund, and establish the contribution mechanism for aggregators. Delay in implementation undermines the legislative intent and leaves millions of workers without the protections that Parliament has already approved.

3. Develop a Universal Social Security Architecture

Rather than piecemeal benefits (PMJAY for health, e-Shram for registration), India needs a comprehensive, portable social security system for gig workers that bundles healthcare, accident insurance, pension, maternity benefits, and disability coverage into a single entitlement linked to the worker’s unique ID. The Rajasthan model of a platform welfare cess could be scaled nationally to finance such a system.

4. Ensure Platform Accountability

While gig workers may not be “employees” in the traditional sense, platforms exercise significant control through algorithms that determine task allocation, pricing, ratings, and deactivation. A regulatory framework should mandate:

  • Algorithmic transparency in wage-setting and performance evaluation
  • Minimum per-task or per-hour payment floors indexed to state minimum wages
  • Safety standards for delivery workers, including mandatory rest periods and working hour limits
  • Protection against arbitrary deactivation with notice and appeal mechanisms
  • Data portability so that workers can carry their ratings and work history across platforms

5. Adopt the “Dependent Contractor” Classification

Following the UK Taylor Review and the ILO’s 20th ICLS standards, India should consider introducing a “dependent contractor” category in its legal framework. This would be an intermediate classification between employee and independent contractor, applicable to workers who are technically self-employed but economically dependent on a single platform or a small number of platforms. This category would carry specific rights (minimum payment, safety standards, social security) without the full bundle of employment rights.

6. Strengthen State-Level Initiatives

The Rajasthan model should be studied, refined, and replicated. State governments can serve as laboratories for gig worker welfare, experimenting with different approaches to registration, cess collection, grievance redressal, and benefit delivery. Karnataka, Telangana, and Maharashtra, which have large gig worker populations, should be encouraged to develop state-level frameworks.

7. Enable Collective Voice

Gig workers currently have no legal right to form unions or engage in collective bargaining with platforms. While the Industrial Relations Code, 2020 does not cover gig workers, the government should explore mechanisms for collective representation, whether through trade unions, worker cooperatives, or platform-level worker councils. The right to collective voice is essential for addressing the power asymmetry between individual workers and large platform corporations.

8. Invest in Skilling and Transition Support

Many gig workers enter platform work as a stopgap measure. The government should link gig worker registration with skilling programmes under the Skill India Mission, enabling workers to upgrade their skills and transition to higher-value employment. This is particularly relevant for low-skilled gig workers in delivery and logistics who face the risk of automation in the medium term.

Key Takeaways for UPSC Aspirants

For quick revision before the examination, here are the essential points to remember:

  • Definition: A gig worker performs work outside the traditional employer-employee relationship. Platform workers specifically use digital platforms to connect with clients. Both are defined under the Code on Social Security, 2020 (Sections 2(35) and 2(61)).
  • Scale: 7.7 million gig workers in 2020-21, projected to reach 23.5 million by 2029-30 (NITI Aayog, 2022). They constituted 2.6% of non-agricultural workforce.
  • PLFS Gap: India’s primary labour survey (PLFS) does not have a separate category for gig workers. They are lumped under “self-employed” or “casual labour,” making them statistically invisible.
  • Legal Framework: The Code on Social Security, 2020 provides for a Social Security Fund with 1-2% aggregator contribution. Rajasthan enacted the first state-level Gig Workers Act (2023) with a per-transaction welfare cess.
  • Budget 2025: Identity cards via e-Shram registration, PMJAY healthcare coverage for gig workers, and Rs 32,646 crore allocated to the Labour Ministry (80% increase).
  • Global Comparison: EU Platform Work Directive (2024) establishes a presumption of employment; UK’s Taylor Review proposed “dependent contractor” category; US BLS added “electronically mediated workers” in 2017 survey.
  • Social Security Gaps: No ESI, EPF, minimum wage, maternity benefits, or unfair dismissal protection for gig workers. Platform-provided insurance is limited and conditional.
  • Constitutional Basis: Articles 41 (right to work and public assistance), 42 (just and humane conditions of work), and 43 (living wage) of the Directive Principles provide the constitutional foundation for gig worker welfare.
  • Way Forward: Update PLFS methodology, implement SS Code rules, develop portable universal social security, ensure platform accountability through algorithmic transparency, and adopt a “dependent contractor” legal classification.
  • Cross-Paper Relevance: GS1 (society and urbanisation), GS2 (governance, social justice, and welfare schemes), GS3 (economy, employment, and inclusive growth), and Essay Paper (technology and society themes).

Conclusion

The question of whether gig workers are part of India’s labour data is not merely a statistical technicality. It goes to the heart of how India counts, recognises, and protects its workforce in the 21st century. The gig economy is not a temporary phenomenon; it is a structural transformation of work that will only accelerate with advances in artificial intelligence, automation, and digital connectivity. India’s policy response, from the Code on Social Security to the Budget 2025 measures, represents a beginning, but it remains inadequate in scale, scope, and implementation.

For UPSC aspirants, this topic offers a rich intersection of economic policy, governance, social justice, and technology. Mastering this subject requires understanding the data gaps (PLFS limitations), the legal architecture (SS Code 2020, Rajasthan Act 2023), the global context (EU Directive, UK Taylor Review), and the human dimension (millions of workers without healthcare, pension, or job security). As India aspires to become a developed economy by 2047, ensuring that its fastest-growing workforce segment is counted, protected, and empowered is not optional; it is imperative.

Strengthen Your UPSC Preparation with Anantam IAS

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Raja Kumar Sir

Written by

Raja Kumar Sir

Faculty — Economics · Anantam IAS

Raja Kumar teaches Economics at Anantam IAS. His sessions start from NCERT fundamentals, build up through the Economic Survey and Budget, and finish with Prelims-ready factual recall plus Mains-ready analytical frames.

Specialises in · Indian economy, macroeconomics and economic survey Experience · 10+ years Visit website ↗

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