Note on Legislations Around Gig Workers

This note provides an overview of legislative developments relating to gig workers and platform workers in India. It covers the Code on Social Security, 2020, State-level welfare legislations enacted by Rajasthan, Bihar, Karnataka, and Jharkhand, as well as the Draft Telangana Bill.

The note also highlights common patterns emerging across State legislations, including welfare boards, welfare fee contributions, worker registration systems, transparency obligations, and social security mechanisms.

State Legislations on Gig and Platform Workers

Currently, four States have enacted legislations relating to gig and platform workers, while Telangana has released a draft Bill.

The legislations are:

The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023 (No. 29 of 2023)
The Bihar Platform Based Gig Workers (Registration, Social Security and Welfare) Act, 2025 (No. 8 of 2025)
The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025 (No. 72 of 2025)
The Jharkhand Platform-Based Gig Workers (Registration and Welfare) Act, 2025 (No. 13 of 2025)
Draft Telangana Gig and Platform Workers (Registration, Social Security, and Welfare) Bill, 2025

The Code on Social Security contains specific provisions relating to gig workers and platform workers.

Relevant provisions include:

Section 2(2) — “aggregator” means a digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider.
Section 2(35) — “gig worker” means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.
Section 2(60) — platform work.
Section 2(61) — platform worker.
Chapter IX — Social Security for Unorganised Workers, Gig Workers and Platform Workers.

Contributions by Aggregators

Section 114(3)(d) mentions that schemes may be funded partly through contributions collected from beneficiaries of the scheme or aggregators.

Section 114(4)

Section 114(4) provides:

The contribution to be paid by aggregators for funding referred to in clause (ii) of sub-section (1) of section 141 shall be at such rate not exceeding two per cent., but not less than one per cent., as may be notified by the Central Government, of the annual turnover of every such aggregator who falls within a category of aggregators specified in the Seventh Schedule.

The Seventh Schedule includes categories such as ride hailing services and similar aggregators.

Section 141 provides for creation of Social Security Funds.

Section 141(1) provides for the Central Government to establish a Social Security Fund for social security and welfare of unorganised workers, gig workers, and platform workers.
Section 141(5) provides for State Governments to establish Social Security Funds for unorganised workers.

The Code therefore specifically provides that the Central Government would create a Social Security Fund for gig workers and platform workers, whereas States may create funds for unorganised workers.

However, since the Central Government has not yet notified the provisions relating to gig workers or platform workers, States have proceeded to frame legislations in this area, labour being a subject under the Concurrent List of the Seventh Schedule to the Constitution.

The Karnataka Act specifically provides that welfare fee collected under the State Act shall count towards contribution under the Code on Social Security, while the Jharkhand Act provides that welfare contribution shall cease upon commencement of Section 141 of the Code on Social Security.

However, the Bihar and Rajasthan Acts are silent on this aspect.

Reference may also be made to:

Rule 49
Rule 65

The Draft Rules do not specifically mention collection of welfare fee by States either on behalf of, or in addition to, contributions under the Central framework.

Common Patterns Between State Legislations

1. Gig / Platform Worker Welfare Board

The State legislations generally provide for establishment of Welfare Boards.

Rights provided to gig workers include:

Registration with unique ID;
Access to specific social security schemes and benefits;
Grievance redressal mechanisms.

The Bihar Act also expressly provides for:

Accidental death benefits;
Accident compensation;
Maternity benefit.

2. Extended Definition of Gig Workers

Several State Acts adopt an expanded definition of gig workers.

The definition generally includes:

a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship and who works on contract that results in a given rate of payment, based on terms and conditions laid down in such contract and includes all piece-rate work.

The portion relating to contractual payment terms and inclusion of piece-rate work is not present in the Code on Social Security and has been added by State legislations.

3. Welfare Fee

Rajasthan

The Rajasthan Act provides for welfare fee at such percentage of the value of each transaction related to platform-based gig workers as may be notified by the State Government.

Bihar

The Bihar Act provides for Welfare Fund Fee from aggregators/platforms which shall not be less than one percent nor exceed two percent of the payout made to a worker in each transaction.

Karnataka

The Karnataka Act provides for Welfare Fee which shall not be less than one percent but not more than five percent of payout to platform-based gig workers in each transaction, as may be notified.

The current notification requires a 1% fee.

Section 20(5) of the Karnataka Act provides that the Welfare Fee collected shall count as total contribution payable under Section 114(4) of the Code on Social Security, 2020.

Jharkhand

The Jharkhand Act provides for welfare contribution at a rate not exceeding two percent, but not less than one percent, of annual turnover (gross revenue) earned in the State from operations involving platform-based gig workers.

Chapter IV of the Jharkhand Act provides:

notwithstanding anything contained in this Act, the collection of the Platform-Based Gig Workers Welfare Contribution shall cease upon commencement of collection of contributions to the Social Security Fund under Section 141 of the Code on Social Security, 2020.

Telangana Draft

The Telangana Draft Bill provides for Welfare Fund Fee from aggregators/platforms which shall not be less than one percent and not exceed two percent of payout to gig and platform workers in each transaction or such rate as may be notified.

4. Unique ID

All legislations provide for creation of unique identification for workers.

5. Transaction Monitoring System / Payment and Welfare Fee Verification System

The legislations generally require every payment made to workers and welfare fee deducted to be recorded in a transaction monitoring system.

The Bihar Act additionally provides that every platform transaction must be mapped to a Management Information System (MIS).

6. Registration Process of Gig / Platform Workers

Most State legislations require aggregators/platforms to provide databases of onboarded or registered gig workers within prescribed timelines.

Karnataka provides a timeline of 45 days from commencement of the Act.
Other States generally provide 60 days.

Under the Jharkhand Act:

Gig workers are required to register on the e-Shram portal;
Aggregators are also required to register.

The Telangana Draft Bill additionally provides for self-registration of workers while also requiring aggregators/platforms to provide databases of onboarded workers.

7. Registration of Aggregators and Platforms

All State legislations contain provisions requiring aggregators/platforms to register with the Welfare Board or designated authority within prescribed timelines, generally ranging from 30 to 45 days.

8. Transparency in Automated Monitoring and Decision-Making Systems

All State legislations contain provisions relating to transparency in automated monitoring and decision-making systems.

Platforms are generally required to disclose information affecting working conditions of workers.

The legislations also require aggregators/platforms to take measures to prevent discrimination on grounds such as:

Religion;
Race;
Caste;
Gender;
Place of birth;
Disability.

9. Obligations of Fair Contract

The legislations generally require contracts to:

Be in simple language;
Be available in English, Hindi, or languages under the Eighth Schedule to the Constitution understood by the worker.

Subsequent contractual changes must generally be communicated within 7 or 14 days, depending upon the State legislation.

Termination of Work

The Acts generally provide that termination should:

Be based on contractual grounds; and
Be preceded by prior notice of 14 days.

10. Reasonable Working Conditions

The legislations generally require working conditions to:

Not be hazardous;
Comply with sector-specific regulations.

The Bihar Act additionally provides for creation of resting spots in key areas where more than 100 workers of a platform are registered within a district.

References and Reports

IAMAI seeks clarity on gig worker fund, asks Karnataka to hold welfare fee
4 states have gig worker laws. But have they really helped?
The Bihar Gig Workers Law: A bold step forward but a step back for trade unions
India parliament panel calls for tighter protection for gig workers

Conclusion

The legislative framework governing gig workers and platform workers in India is presently evolving through a combination of Central and State initiatives.

While the Code on Social Security provides the broad framework for social security of gig and platform workers, implementation at the Central level remains pending. In the meantime, several States have enacted welfare-focused legislations introducing welfare boards, welfare fees, registration systems, grievance mechanisms, and obligations upon aggregators/platforms.

Despite variations in structure and contribution mechanisms, the State enactments display several common patterns, particularly with respect to worker registration, welfare funding, transparency obligations, and regulation of platform-based work arrangements.