State plans to bring gig workers under social security net

Gig workers — defined under section 2(35) of the Code on Social Security, 2020 — are individuals who perform tasks or services independently, often across multiple platforms, without fixed working hours. At present, they are usually treated as “partners” rather than employees, leaving them outside the ambit of most labour protections

Mumbai: With over five lakh gig workers employed across more than 320 e-commerce, aggregator and service platforms in Maharashtra, the state government is moving to regulate the sector and extend social security and labour law benefits to these workers.

State plans to bring gig workers under social security net

The labour department has prepared a draft bill that will require firms to contribute a cess — based on their tax and GST payments — to create a welfare corpus. This fund will finance schemes such as health cover, life insurance, fixed remuneration, and educational benefits for workers and their families. A similar model already operates for construction workers, where a 1% cess on project costs brings in over ₹100 crore annually.

Gig workers — defined under section 2(35) of the Code on Social Security, 2020 — are individuals who perform tasks or services independently, often across multiple platforms, without fixed working hours. At present, they are usually treated as “partners” rather than employees, leaving them outside the ambit of most labour protections.

Labour minister Akash Fundkar said the Centre has cleared the state’s proposal, and the aim is to have a “fool-proof” law ready for immediate implementation after passage in the winter session of the legislature this December.

The draft law will be finalised after consultations with stakeholders, including e-commerce platforms, delivery firms, ride-hailing companies, and worker unions. The government has also directed the creation of a comprehensive database of gig workers through mandatory registration, which will help design targeted welfare schemes.

Fundkar said initial talks with driver unions for Ola and Uber revealed that some aggregators have 20,000–27,000 drivers each, suggesting that a significant share of the workforce comes from the ride-hailing sector alone. The government is engaging with GST officials to estimate the sector’s turnover, since direct details of individual payees cannot be disclosed.

Officials said the planned social security measures will cover health services, accident and life insurance, education assistance, and minimum pay guidelines. The minister added that Union labour minister Mansukh Mandaviya has already met state counterparts to urge them to prepare their frameworks under the central labour codes.

“This is about giving dignity and protection to a workforce that has long operated in the shadows of formal employment,” Fundkar said.