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Retirement

Gig Workers Get A Foot In The Social Security Door

Much will depend on how the scheme is rolled out. Registration is likely to be a key step, but getting millions of gig workers into a formal database is no small task

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Employees’ State Insurance (ESI) Scheme Photo: AI
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Summary of this article

  • ESI extension brings social security to gig, platform workers

  • Labour codes formally recognise gig workers as a separate category

  • Challenges remain on eligibility, funding, registration, awareness

  • Success depends on execution, not just policy intent

For years, India’s gig workers have kept cities moving, delivering food, ferrying passengers, fixing appliances, without the cushion of formal social security. A new move to extend the Employees’ State Insurance (ESI) Scheme to this segment attempts to plug that gap. It is a notable policy turn, even if the fine print leaves several questions open.

The change stems from the labour codes, which, for the first time, recognise gig and platform workers as a separate category. That shift in language is more than technical. It acknowledges a workforce that does not fit neatly into the employer-employee template but is too large to be left outside welfare systems.

If the scheme works the way it is meant to, a worker could at least rely on some medical treatment and a bit of financial help when they fall sick or get hurt and are unable to work, according to a recent news report by Scroll.in.

2 March 2026

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For workers who typically rely on daily earnings, even a short disruption can strain finances. In that sense, a contributory social security system, however modest, can offer some relief.

A Scheme Built For Stability Meets A Fluid Workforce

The challenge begins with the nature of gig work itself. This kind of work doesn’t come with a fixed routine or predictable pay. One day, a driver may be logged into one app, the next day another; a delivery rider might step in only during busy hours, and many keep hopping between platforms just to keep the income flowing. Fitting such irregular patterns into a system designed around fixed wages and continuous employment is not straightforward.

Eligibility, therefore, becomes a grey area. It is not yet clear how authorities will decide who qualifies for benefits and who does not. If there are no clear cut-offs, some people will get covered, and others doing similar work may miss out, especially those already at the fringes.

Then there is the question of funding. Platform companies are expected to contribute to a social security pool, but within prescribed limits. If the pool remains shallow, the benefits it can support may also be limited. That raises doubts about how meaningful the coverage will be when workers actually need it.

Between Policy Promise And Ground Reality

Much will depend on how the scheme is rolled out. Registration is likely to be a key step, but getting millions of gig workers into a formal database is no small task. Many operate with minimal documentation or move frequently between cities and platforms.

There is also the practical issue of awareness. A policy announcement does not automatically translate into uptake. Workers need to know what they are entitled to and how to claim it, something that has often been a weak link in welfare delivery.

There is also a more basic issue. Gig workers are still not treated as employees. That means they don’t have the same legal footing as someone in a formal job. If they are left out or face delays, there isn’t much they can do to challenge it. In that sense, whatever support is offered may depend more on how the system works than on any guaranteed right.

It could also end up playing out differently from one state to another, which would only make things more complicated. Since implementation may differ across regions, access to benefits might depend as much on geography as on eligibility.

An Opening Move, Not The Endgame

Bringing gig workers into the ESI fold is a move in the right direction. It shows the system is, at least now, starting to catch up with how work has actually changed on the ground.

That said, this is still just the beginning. It points to where things might go, rather than offering a fully worked-out system right away. For gig workers, the real test will lie in whether this translates into timely, usable support when they need it most.

For now, the promise of social security has edged closer. Whether it settles into something dependable will depend on how the gaps of clarity, coverage, and execution are addressed in the months ahead.