According to TechCrunch, India has granted legal status to millions of gig and platform workers under newly implemented labor laws that took effect last Friday. The Code on Social Security requires aggregators like food delivery and ride-hailing platforms to contribute 1-2% of their annual revenue toward a government-managed social security fund, capped at 5% of payments made to workers. India’s gig economy includes over 12 million people working for companies including Amazon, Flipkart, Swiggy, Uber, Ola, and quick-delivery apps like Zepto and Blinkit. However, what benefits workers will actually receive, how they’ll access them, and when payouts begin all remain unclear. The law creates Social Security Boards with worker and company representatives, but doesn’t extend minimum earnings, employment protections, or working-condition guarantees to this workforce.
The devil in the details
Here’s the thing about landmark legislation: the announcement often sounds more impressive than the reality. While companies are publicly welcoming the reforms, they’re still figuring out what this actually means for their operations. An Amazon India spokesperson said they’re “evaluating the changes,” while Zepto called it “a big step toward clearer, simpler rules.” But let’s be real – when corporations describe regulations as supporting “ease of doing business,” they’re usually talking about minimizing disruption to their bottom line.
And the financial impact could be significant. Corporate lawyer Aprajita Rana notes this “will naturally have a financial impact” on India’s e-commerce sector. Companies now face new compliance headaches – they have to register workers, track who’s working for multiple platforms, and set up grievance mechanisms. Basically, they’re being forced to treat gig workers less like disposable resources and more like… well, people with rights.
The registration problem
One of the biggest hurdles? Getting workers registered on the government’s E-Shram portal. Only about 300,000 platform workers have registered so far, despite India having an estimated 10 million gig workers. That’s a massive gap.
Ambika Tandon from Cambridge University points out the obvious problem: “These workers work for 16 hours a day. They don’t have time to go and register themselves on the government portal.” Think about that – workers would need to take unpaid time off to potentially qualify for benefits that might materialize… eventually. The incentives just aren’t there yet.
What’s still missing
The new law completely sidesteps the elephant in the room: employment status. Unlike countries like the UK, Spain, and New Zealand where courts are moving toward recognizing platform workers as employees, India has created a separate category that denies them minimum wages, paid leave, and other basic protections.
Trade unions aren’t happy about this. Shaik Salauddin of the Telangana Gig and Platform Workers Union says they’re still demanding “minimum wage and an employer-employee relationship.” Workers care more about immediate issues like fluctuating earnings and sudden account suspensions than distant insurance benefits. And honestly, can you blame them?
State-by-state chaos
Here’s where it gets really messy. Labor policy in India is shared between federal and state governments, meaning implementation will vary dramatically depending on where workers live. We’ve already seen this play out – Rajasthan’s legislation stalled after passing in 2023, while Karnataka moved quickly with its Gig Workers Act.
So workers in some states might see real benefits sooner, while others could wait years. This creates exactly the kind of uneven playing field that comprehensive national legislation is supposed to prevent. The government has settled the legal status question, but whether this actually improves workers’ lives remains to be seen. Given how slowly bureaucracy moves, meaningful protections could take years to materialize – if they materialize at all.
