Centre drafting insurance scheme for gig workers with life, accident cover

The labour ministry is drafting a social security scheme offering insurance and possible pension cover for gig workers under the Code on Social Security

The Ministry of Labour and Employment is drafting a new scheme for providing accidental and life insurance coverage to gig workers in line with the provisions of the Code on Social Security, 2020, according to three people aware of the development. The scheme is likely to lay down rules for the social security scheme. The ministry is also considering inclusion of pension security as part of the scheme, a senior official said.

 

An email query sent to the labour ministry did not elicit any response until press time.

 

India has an estimated 14.3 million gig workers in 2025-26, according to government think tank NITI Aayog. This number is expected to reach 23.5 million by 2030.

 

The Code on Social Security provides for the creation of a National Social Security Board to recommend and oversee welfare schemes for gig and platform workers. Draft rules for the Code also propose setting up a Social Security Fund, which would finance such schemes through contributions from online platforms such as ride-hailing and food-delivery companies. Under the draft rules, aggregators would contribute 1-2 per cent of their annual turnover to the Fund, capped at 5 per cent of the amount they pay to gig workers.

 

Discussions on such a scheme had begun within the Employees' Provident Fund Organisation (EPFO) even before the Labour Codes were made effective in November 2025. During a Central Board of Trustees (CBT) meeting in October 2025, members were informed that software provisions for a gig workers’ scheme were being developed under the proposed EPFO 3.0 framework, another official said.

 

The draft rules for the Code also propose eligibility thresholds for gig workers. These workers would need to complete at least 90 days of work with an aggregator in a financial year to qualify for benefits. Those working with multiple platforms would need to complete 120 days of work in total. This provision drew backlash from gig workers’ unions and critics, who argued that these work-day thresholds may exclude a large number of gig workers who engage in part-time, intermittent or seasonal platform work. In response, the ministry is open to revisiting the work-day requirement if it ends up excluding a large section of workers, particularly women, who are more likely to engage in seasonal platform work, officials said. The scheme is expected to be announced once the final rules for the four Labour Codes are notified by the end of March.

 

“Aggregators have their own terms for providing insurance, and each platform offers different types of coverage. These vary widely and do not provide universal protection for workers. Some companies do not even cover immediate family members, and most aggregators also do not offer insurance coverage for workers’ parents,” said Nitesh Kumar Das, organising secretary of the Gig Workers Association (GigWa).