India Wants Gig Workers to Register on e-Shram Portal, Come Under Social Security Net

India’s labor ministry is formalizing the gig economy by mandating platform aggregators and workers to register gig workers on the e-Shram portal.

The Ministry of Labour and Employment (MOL&E) has intensified efforts to formalize the gig economy by mandating the registration of platform aggregators and their associated workers on the e-Shram portal. This move aims to provide platform and gig workers with enhanced social security benefits, fostering fair labor practices in one of India’s fastest-growing employment sectors.

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The Ministry has directed aggregators to register platform workers on the e-Shram portal to generate unique IDs. These IDs will help determine the total number of platform workers in the country and aid in developing guidelines to extend social security benefits. Currently, India has approximately 20 million platform workers.

Since gig or platform workers often engage with multiple platforms simultaneously, they do not fit within the traditional employer-employee framework. To address this, the government is considering assigning such a unique ID to each worker, enabling platforms to deduct contributions on a per-transaction basis, according to sources speaking to media.

Government’s vision for the gig economy

In a notification released on September 16, 2024, MOL&E introduced a Standard Operating Procedure (SOP) for onboarding gig workers and aggregators onto the e-Shram portal. The platform, launched in 2021, currently supports over 297.9 million unorganized workers by issuing a Universal Account Number (UAN) to facilitate access to skilling programs, job opportunities, and welfare schemes.

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At a meeting chaired by the Union Minister of Labour and Employment on September 18, prominent aggregators like Swiggy, Urban Company, Zomato, Uber, and Amazon participated in discussions aimed at achieving full compliance within three months. This initiative underscores the government’s commitment to addressing vulnerabilities in the gig workforce.

Compliance roadmap for aggregators

Aggregators, defined as digital marketplaces connecting service providers with users, are now required to complete registration on the e-Shram portal. Key compliance steps include:

1. Digital registration: Submission of documents like GST registration, PAN and Aadhaar details of authorized signatories.
2. Aadhaar eKYC verification: Verification and acknowledgment of registration through a unique ID.
3. API integration: Testing and integration to upload worker details, including UANs, employment statistics, and financial turnover.

These steps ensure streamlined data collection and facilitate monitoring of employment trends across various gig-based service sectors such as ride-sharing, food delivery, logistics, and healthcare.

Bridging the social security gap for gig workers

The gig economy, projected to employ 23.5 million workers and account for 6.7 percent of India’s non-agricultural workforce by 2030, faces challenges related to inadequate social protections. The Code on Social Security, 2020, though not yet enforced, explicitly recognizes gig and platform workers. The e-Shram registration drive aligns with the broader framework of this code, laying the groundwork for equitable policies and benefits.

Impact and outlook

The MOL&E’s notification marks a critical step in formalizing the gig economy. By fostering collaboration between aggregators and the government, it aims to ensure a fairer labor landscape for millions of workers. However, effective implementation and sustained engagement will be key to realizing these goals.

As India’s regulatory framework evolves, the success of this initiative could serve as a model for addressing labor challenges in the global gig economy.

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