A gig worker is a person who earns from work arrangements outside a traditional employer-employee relationship, such as freelance, contract, or platform-based tasks. The Code on Social Security, 2020 recognises gig and platform workers as a distinct category and extends social security schemes to them, but does not treat them as employees.

Gig Worker

A gig worker is a person who earns from work arrangements outside a traditional employer-employee relationship, such as freelance, contract, or platform-based tasks. The Code on Social Security, 2020 recognises gig and platform workers as a distinct category and extends social security schemes to them, but does not treat them as employees.

What is Gig Worker?

A gig worker is defined under the Code on Social Security, 2020 as a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship. A platform worker is a related sub-category who accesses work through an online platform or app (for example, ride-hailing, food delivery, or e-commerce logistics). The Code recognises both groups for the first time in Indian labour law and provides for social security schemes covering life and disability cover, accident insurance, health and maternity benefits, and old-age protection, to be funded partly through aggregator contributions. Because a gig worker is not classified as an employee, statutory benefits that attach to employment (PF, ESI, gratuity, paid leave, notice period) do not automatically apply. Note that the labour codes are being operationalised in phases and specific contribution rates, thresholds, and scheme details are set through rules and notifications, so verify against the latest notification before acting.

How Gig Worker is used

In an Indian company, gig workers usually sit outside the payroll system. They are engaged on service or contractor agreements, paid against invoices or per-task rates without PF, ESI, or TDS-on-salary deductions, and their payments run through vendor or contractor payouts rather than the monthly salary cycle. HR and finance track them separately from permanent headcount, and TDS, where applicable, is deducted under contractor sections rather than Section 192.

Gig Worker FAQs

Is a gig worker an employee under Indian law?

No. A gig worker earns from work arrangements outside the traditional employer-employee relationship. The Code on Social Security, 2020 recognises gig and platform workers as a separate category, so employment benefits like PF, ESI, gratuity, and notice period do not automatically apply.

Do gig workers get PF and ESI?

Not through the regular employee route, because they are not classified as employees. The Code on Social Security, 2020 instead provides for separate social security schemes for gig and platform workers, funded partly by aggregator contributions. The exact schemes and rates depend on rules and notifications, so verify against the latest notification.

How is a gig worker different from a platform worker?

A platform worker is a sub-set of gig workers who access work through an online platform or app, such as ride-hailing or food delivery. Every platform worker is a gig worker, but a gig worker may also work offline through direct arrangements without any platform.