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Imagine delivering thousands of orders, clocking countless kilometers, yet having no safety net when you fall sick or plan for retirement. This was the reality for millions of India's gig workers—until now.
November 21, 2025, marks a watershed moment. The Labour Code 2025 has officially rolled out, transforming gig workers from an invisible, unprotected workforce into legally recognized employees with comprehensive rights. For the first time ever, benefits for gig workers aren't voluntary handouts—they're your legal entitlement.
Here's what's changed overnight:
- Universal social security – PF, insurance, and ESIC coverage for all
- Platform contributions – Companies must fund 1-2% of turnover for worker welfare
- Portable benefits – Your Aadhaar-linked account follows you anywhere
- Health protection – Free annual check-ups and accident insurance
- Pension plans – Secure your retirement, finally
- Minimum wages – Guaranteed pay with timely disbursement
The benefits for gig workers under this reform are game-changing. Whether you're delivering food in Mumbai, driving cabs in Bengaluru, or working on any platform, you now have protections that permanent employees enjoy.
In this blog, we'll break down:
- Who qualifies as a gig worker under the new definitions
- What protections and benefits gig workers will now receive
- How these changes impact businesses, platforms, and HR teams
- A practical roadmap for compliance readiness and workforce support for companies like Zomato, Swiggy, and Uber.
- How digital platforms can help organizations engage and support gig workers at scale
Together, these insights will help HR leaders prepare for the new regulatory landscape and build a more stable, secure, and engaged gig workforce.
Who counts as a gig worker under the new labour codes?
Under the Labour Code 2025, gig workers receive a formal legal identity within India’s social security framework for the first time. According to the Code on Social Security, 2020, a gig worker is defined as a person who performs work or participates in a work arrangement and earns from such activities outside the traditional employer–employee relationship. This definition now becomes enforceable with the rollout of the four labour codes on 21 November 2025.
Gig workers operate through on-demand, task-based, or digital platforms, often without fixed hours or long-term contracts. These workers typically rely on app-based or platform-mediated assignments, yet until now had no statutory access to social protection.
Who is considered a gig worker under the new codes?
- Delivery partners working with food, grocery, and commerce platforms
- Ride-hailing drivers (two-wheeler, three-wheeler, four-wheeler)
- Freelancers and independent contractors servicing digital platforms
- On-demand task workers such as repair technicians, beauticians, tutors, fitness trainers, or home-service providers
- Part-time digital earners who work through multiple apps simultaneously
India has several million such workers, many of whom contribute to essential urban services but previously lacked any financial or social safety net.
With the definition clarified, the next step is to understand the specific benefits and protections the new labour codes introduce for gig workers—marking India’s first nationwide safety framework for this workforce.
What benefits and protections do the new labour codes guarantee gig workers
The Labour Code 2025 marks the first time gig workers in India receive access to structured social security and welfare benefits. These protections, introduced through the Code on Social Security and implemented under the four labour codes, extend essential coverage to millions of workers who were previously outside the formal safety net.
The new framework ensures gig workers gain access to core protections such as insurance, health benefits, and long-term security programs that are typically reserved for formal employees. This represents a major shift in how India acknowledges and supports its platform-driven workforce. Key benefits gig workers gain under the labour codes include:
1. First-time legal recognition
- Gig work, platform work, and aggregators have been defined for the first time in Indian labor law
- Provides formal legal status and protection to gig workers
2. Social security coverage
- Universal social security coverage for all gig and platform workers
- Access to provident fund (PF), ESIC, insurance, and other social security benefits
- Previously, these workers had no such protections
3. Aggregator contributions
- Platforms/aggregators (like Zomato, Swiggy, Uber) must contribute 1-2% of annual turnover
- Contribution is capped at 5% of the amount paid/payable to gig and platform workers
- This creates a dedicated fund for worker welfare
4. Portable benefits
- Aadhaar-linked Universal Account Number system
- Makes welfare benefits fully portable across states
- Workers can access benefits regardless of migration or location changes
- Benefits follow the worker, not tied to a single employer or location
5. Additional protections
- Minimum wage guarantees for all workers
- Timely payment of wages ensured
- Access to grievance redressal mechanisms
Together, these benefits represent the most comprehensive protection India has ever offered to gig workers, creating a foundation for safer, more stable forms of flexible employment.
What gig workers received earlier vs. what they receive now
With gig worker benefits defined, the next question for employers and platforms is how these new responsibilities translate into operational and compliance obligations.
What this shift means for businesses, platforms, and HR leaders
The inclusion of gig workers under the Labour Code 2025 fundamentally changes how businesses, aggregators, and HR teams must manage this workforce. What was once an informal, lightly regulated labor model now requires structured compliance, worker documentation, benefit delivery, and transparent engagement practices.
For organizations that rely on gig labor—especially delivery, mobility, logistics, and service platforms—this shift introduces new expectations around cost planning, welfare responsibilities, and workforce policies. Key implications for companies and HR leaders:
- Mandatory worker registration: Businesses must formally register gig workers within the government’s social security ecosystem. This requires accurate worker identification, onboarding workflows, and digital record-keeping.
- Social security fund contributions: Platforms must contribute a percentage of their revenue toward a welfare fund for gig workers. This impacts budgeting and requires coordination between finance, HR, and compliance teams.
- Standardized documentation and agreements: Organisations will need to issue structured engagement terms to gig workers, clarifying responsibilities, benefits, and protections—closing the gap between informal arrangements and formal labor expectations.
- Enhanced safety and support requirements: Delivery and mobility platforms must prioritize worker safety standards, insurance coverage, and incident management protocols, as these become core compliance obligations.
- Greater transparency and communication: With new protections in place, gig workers will expect clarity on earnings, benefits, and entitlements. HR teams must establish regular communication channels to build trust and reduce misinformation.
This shift brings gig workers closer to formal labor protections while signaling a new compliance era for businesses that rely heavily on on-demand talent.
With business obligations becoming clearer, the next step is identifying what companies and HR teams can do immediately to prepare for smooth, compliant adoption of these new gig worker mandates.
What gig workers and digital aggregators should do now: Practical roadmap for HR and people leaders
With gig workers now formally included under India’s Labour Code 2025, HR and companies and digital aggregators must take proactive steps to prepare for compliance, streamline operations, and support their gig workforce through the transition.
The shift from informal practices to a structured labor framework requires a combination of documentation, technology readiness, worker education, and internal coordination.
What organizations and HR teams should do next:
- Register gig workers within the required social security systems: Prepare workforce databases, update identity information, and ensure all gig workers can be onboarded into national or state-level registration systems once they go live.
- Issue standardized engagement terms: Create formal agreements that outline payment conditions, safety measures, grievance redressal processes, and benefit eligibility—providing transparency and reducing future disputes.
- Set up financial workflows for social security contributions: Align finance and compliance teams to manage contributions to the social security fund, ensuring accuracy and audit-readiness.
- Strengthen safety, health, and wellbeing protocols: Establish policies for accident reporting, protective gear distribution, wellness support, and insurance facilitation—especially for high-exposure roles such as delivery and mobility.
- Educate gig workers about their new protections: Provide simple, accessible explanations of available benefits, registration requirements, eligibility rules, and how to claim support. This helps build trust and reduces misinformation.
- Implement digital systems for documentation and audits: Digital records of worker activity, payouts, engagement terms, and support measures will be essential for compliance under the new labour codes.
- Update documents and identity details required for registration.
- Understand new benefits available to them and how to claim them.
- Maintain accurate payment and engagement records across platforms.
- Stay informed about welfare and safety features introduced by platforms.
These steps help ensure that both workers and organizations are prepared for a smooth and compliant transition under the Labour Code 2025.
How Xoxoday helps HR leaders support and engage gig workers under the new labour codes
How deskless workforce engagement solutions help HR leaders support gig workers under the new labour codes
The Labour Code 2025 establishes mandatory welfare and social security protections for gig workers, but effective implementation requires more than statutory compliance. HR leaders and digital aggregators must also ensure that gig workers, who are largely mobile, distributed, and deskless, can access benefits, receive communication, and remain engaged in practical, everyday ways.
Xoxoday’s deskless workforce engagement solutions are designed to support this transition by extending benefits, communication, and recognition through mobile-first platforms, aligning closely with how gig workers already interact with work and employers.
1. Mobile-first access aligned with gig work realities
Most gig workers do not operate from offices or desktops, nor do they have access to traditional HR portals. Xoxoday’s deskless workforce engagement solutions address this gap by delivering engagement, benefits, and updates directly through mobile applications.
Through a mobile-first interface, gig workers can:
- Access available benefits, rewards, and entitlements in one place
- Receive policy updates, safety guidelines, and important announcements in real time
- Redeem rewards or benefits independently without HR intervention
- Stay connected to the organization despite working across locations or platforms
This approach supports the Labour Code’s emphasis on portability, inclusion, and accessibility, ensuring that benefits and communication follow the worker rather than being tied to a physical workplace.
2. Supporting gig worker engagement beyond statutory compliance
While the labour codes mandate social security contributions and welfare funds, they do not address day-to-day engagement, motivation, or financial stability challenges commonly faced by gig workers. Xoxoday’s solutions enable organizations to complement mandatory benefits with structured, scalable support mechanisms such as:
- Financial wellbeing tools, including access to earned wages and practical savings benefits to manage income irregularity
- Recognition and incentive programs linked to service quality, safety compliance, attendance, or performance metrics
- Lifestyle, health, and discount benefits that improve perceived earnings and overall worker satisfaction
These initiatives help organizations remain competitive in attracting and retaining gig workers while reinforcing the broader intent of worker security and dignity outlined in the Labour Code 2025.
3. Centralized engagement for a distributed gig workforce
Organizations employing large numbers of gig workers across cities, states, or service categories often face fragmented engagement efforts. Deskless workforce engagement solutions provide a centralized layer that works alongside operational and payout systems.
HR and people teams can:
- Run consistent engagement and recognition programs across gig, contractual, and permanent workers
- Ensure equitable access to benefits for blue-collar and deskless roles
- Maintain digital records of benefit distribution and engagement initiatives for audit and compliance purposes
- Communicate clearly and consistently with workers across regions and platforms
This enables a shift from informal, ad-hoc engagement to a structured and scalable workforce support framework.
4. Building trust and retention in the new gig work environment
As gig workers gain formal recognition and protections under the Labour Code 2025, their expectations around transparency, fairness, and support will increase. Xoxoday’s workforce engagement solutions help organizations meet these expectations by improving visibility into benefits, enabling timely recognition, and maintaining consistent communication.
By combining mobile accessibility, inclusive engagement, and structured benefit delivery, these solutions support HR leaders in building long-term trust, workforce stability, and retention, while remaining aligned with the evolving regulatory landscape.
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Wrapping up
The Labour Code 2025 marks a defining shift in India’s employment landscape, bringing gig workers into the fold of formal labor protection for the first time. For HR leaders and platform organizations, this transition is more than a compliance requirement—it is an opportunity to create a more stable, resilient, and engaged gig workforce.
By investing early in structured benefits, clear documentation, transparent communication, and scalable engagement systems, companies can support worker wellbeing while meeting legal obligations. The organizations that embrace this shift will not only mitigate compliance risks but also strengthen workforce trust and long-term platform loyalty.
