Quick answer: A gig worker is a person who performs work and earns from it outside a traditional employer-employee relationship, as defined in section 2(35) of the Code on Social Security, 2020. Gig and platform workers do not get PF or gratuity as employees. Instead, aggregators fund welfare schemes with 1% to 2% of annual turnover, capped at 5% of payouts.
- The Code on Social Security took effect on 21 November 2025 and recognises gig, platform and unorganised workers.
- Platform work, under section 2(60), is paid work arranged through an online platform outside an employment relationship.
- Workers register on the central portal from age 16, using Aadhaar.
- Benefits need 90 days with one aggregator, or 120 days across several, in the previous financial year.
How does the Code on Social Security treat gig workers?
As a separate category. They are neither employees nor ignored.
Before November 2025, Indian labour law had no name for a delivery rider or a ride-hailing driver. The Code on Social Security created three overlapping labels: gig worker, platform worker and unorganised worker. It then made “aggregators”, defined as digital intermediaries or marketplaces, pay into a social security fund for them.
The scheme design sits with the Central Government. Health, disability, accident and old-age cover are the stated aims. The contribution itself is fixed in the statute.
How much does an aggregator pay?
Between 1% and 2% of annual turnover, but never more than 5% of what it pays gig and platform workers. That is section 114(4), in the Code on Social Security text on Court Book.
Suppose a platform has ₹500 crore of annual turnover and pays ₹40 crore to gig workers.
| Step | Amount |
|---|---|
| 1% of turnover (floor of the range) | ₹5 crore |
| 2% of turnover (top of the range) | ₹10 crore |
| Cap: 5% of payouts to gig workers | ₹2 crore |
| Contribution payable | ₹2 crore |
The cap bites first. So the notified rate inside the 1% to 2% band matters only for platforms whose payouts to gig workers run large compared with their total turnover. Late contributions carry 1% interest a month under the central rules.
Are your India contractors gig workers?
Probably not, unless a platform matches them to work. A software developer on a monthly retainer is an independent contractor or, on the facts, an employee.
The gig label fits on-demand, task-based work routed through an app. It does not shelter a full-time role from employment law. If you pay a “gig” designer for 45 hours a week, every week, the real question is employee misclassification, and the answer may be ESI, PF and gratuity. Our article on EOR for gig workers looks at when to convert. Labels never decide it. The guide to avoiding contractor misclassification risks lists the tests.
How does Remunance help when gig roles need employment terms?
Remunance can employ your recurring gig or project workers as EOR staff in any of the 34 Indian cities where we already hire, with ESIC, EPF, leave and full and final settlement handled. Pricing is a flat fee from USD 99 per employee per month. If some of your on-demand workers have become permanent fixtures, find out which roles to convert.
What else do people ask about gig workers in India?
Are gig workers employees under Indian law?
No. The Code on Social Security defines them as working outside a traditional employer-employee relationship, so employee benefits do not apply automatically.
Do gig workers get PF in India?
Not as employees. They get access to government welfare schemes funded partly by aggregator contributions, after registering on the central portal.
What is the difference between a gig worker and a platform worker?
The channel. The Code defines them separately, but both work outside a traditional employment relationship. A platform worker is engaged through an online platform that connects them with customers for payment.