What Happened
- The government is examining domestic and international models to design a social security scheme — including insurance cover — for an estimated 32 crore unorganised, gig, and platform workers in India.
- The Employees' State Insurance Corporation (ESIC) is at the centre of this exercise, reviewing feasibility of extending medical and accident insurance benefits to workers outside the formal employment sector.
- Draft rules under the Code on Social Security 2020 (released January 2026) propose that gig and platform workers engaged with an aggregator for at least 90 days in a financial year qualify for Central social security benefits.
- Under the 2026 framework, aggregators (platforms like Zomato, Swiggy, Ola, Urban Company) must contribute 1–2% of their annual turnover to a new social security fund, capped at 5% of total payout to workers.
- Over 31.2 crore workers are registered on the e-Shram portal (December 2025), representing the unorganised workforce database that will underpin expanded coverage.
Static Topic Bridges
Code on Social Security 2020 and Gig Worker Recognition
The Code on Social Security 2020 is one of four Labour Codes that consolidate 29 central labour laws into a simplified framework. For the first time in India's labour law history, it explicitly recognises gig workers and platform workers as distinct categories deserving social security protection — a landmark legal acknowledgment of the gig economy's structural reality.
- Gig worker (Section 2(35) of the Code): A person who performs work or participates in a work arrangement outside of traditional employer-employee relationships.
- Platform worker: A gig worker engaged via an online platform/app that connects them to service seekers.
- Section 113: Central and State governments must frame social security schemes for unorganised workers.
- Section 114: Empowers the government to frame schemes for gig/platform workers covering life insurance, disability, health, maternity, and old-age protection.
- The Code consolidates: Employees' PF Act, ESI Act, Gratuity Act, Maternity Benefit Act, and 5 others.
- Implementation status: Code passed in Parliament (2020) but not yet fully notified; Rules still being finalised.
Connection to this news: The ESIC examination is a step towards operationalising Section 113–114 mandates — converting the Code's promise of gig worker protection into a functioning insurance architecture.
ESIC and the Organised Sector Safety Net
The Employees' State Insurance Corporation (ESIC) is a statutory body under the Ministry of Labour and Employment that provides comprehensive social security to workers in the organised sector. It is self-financing through contributions from employers and employees, and provides medical care, sickness, maternity, disability, and dependants' benefits.
- ESI Act 1948: Mandatory for establishments with 10+ workers earning up to ₹21,000/month (₹25,000 for persons with disabilities).
- Contribution: Employer 3.25% of wages + Employee 0.75% of wages (total 4% of gross wage).
- Coverage (2025): Over 3.5 crore insured persons (IPs) and their dependants; 160+ ESIC hospitals, 1,500+ ESIC dispensaries.
- ESIC wage ceiling hike proposed (2026): From ₹21,000 to ₹25,000–₹30,000 to bring more workers under ESI coverage.
- Under the Code on Social Security 2020, ESIC coverage is extended pan-India (previously limited to notified areas).
- Voluntary ESI membership now allowed for sub-10 employee establishments if employer and workers agree.
Connection to this news: Extending ESIC-type coverage to gig workers poses fundamental design challenges: ESI is contribution-based with stable employer-employee relationships, whereas gig work involves volatile incomes and multiple/no fixed employers. New models must adapt the architecture for this reality.
e-Shram Portal and Unorganised Worker Registration
The e-Shram portal, launched in August 2021 by the Ministry of Labour and Employment, is India's first national database of unorganised workers. Registration provides workers a unique Universal Account Number (UAN) linked to Aadhaar, enabling portability of benefits across states and schemes. Over 31 crore workers had registered by December 2025, making it the world's largest unorganised workforce registry.
- e-Shram workers: Entitled to ₹2 lakh accident insurance under PM Suraksha Bima Yojana as an initial benefit.
- Categories: Construction workers, domestic workers, street vendors, agricultural labourers, garment workers, and now gig/platform workers.
- Integration: e-Shram UAN is being linked with PMJDY bank accounts, Aadhaar, and state social security schemes to enable targeted benefit delivery.
- Karnataka's model: The Karnataka Platform Based Gig Workers (Social Security and Welfare) Act 2025 is the first state law dedicated to gig worker welfare — a policy experiment that may inform Central rules.
- Challenge: Many unorganised workers registered on e-Shram have not actively accessed benefits, pointing to awareness and last-mile gaps.
Connection to this news: The e-Shram database is the targeting infrastructure for any future insurance scheme — the 32 crore figure cited by the government maps closely to e-Shram registrations, indicating that the identity layer is ready even if the benefit layer is under construction.
Key Facts & Data
- Target population: ~32 crore unorganised, gig, and platform workers
- Implementing agency under review: ESIC (Employees' State Insurance Corporation), Ministry of Labour and Employment
- Legal basis: Code on Social Security 2020, Sections 113 & 114
- e-Shram registrations: 31.2 crore workers (December 2025)
- Aggregator contribution (proposed): 1–2% of annual turnover, capped at 5% of worker payouts
- Qualifying condition (draft rules): 90 days of engagement with an aggregator per financial year
- ESI contribution (organised sector): 3.25% employer + 0.75% employee = 4% of wages
- ESI wage ceiling: ₹21,000/month (hike to ₹25,000–30,000 proposed)
- India's gig workers: 7.7 million (2024) → 23.5 million projected by 2029–30
- Karnataka first-mover: Platform Based Gig Workers (Social Security and Welfare) Act 2025