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India's New Labor Codes: Gig Workers Get 2% Turnover
21 Nov
Summary
- Companies must allocate up to 2% of annual turnover for gig workers.
- New labor codes define gig workers, platform workers, and aggregators.
- Gig workers will now receive social security benefits like PF and ESIC.
Effective November 21, 2025, India has enacted four new labor codes, consolidating 29 existing laws. These reforms introduce a significant mandate for companies in the online food delivery, e-commerce, and quick-commerce sectors, requiring them to allocate up to 2% of their annual turnover to support gig and platform workers. This move marks a pivotal moment, as the government has officially defined these worker categories for the first time.
The Code on Social Security, 2020, under these new reforms, ensures that all workers, including gig and platform workers, will now have access to comprehensive social security coverage. This includes benefits such as Provident Fund (PF) and Employee State Insurance Corporation (ESIC), offering a substantial improvement over their previous limited protections.
