Economy
Gig Workers' Social Security: National Board, Aggregator Levy and the Code on Social Security Explained
By Shivam Singh, Founder & Mentor, Minimalist IAS
· 6 min read
WhatsApp Telegram
The National Social Security Board is the body under the Code on Social Security, 2020 that recommends schemes for unorganised, gig and platform workers and monitors them. Chaired by the Union Labour Minister, it works alongside an aggregator levy of 1–2% of annual turnover, capped at 5% of what aggregators pay workers, which can fund benefits for platform workers.
Why in news: The Labour Ministry's rollout of the Code on Social Security, 2020 centres on a National Social Security Board, chaired by the Union Labour Minister, and an aggregator levy for gig and platform workers. The Code took effect in November 2025 with the other three Labour Codes.
Key facts at a glance
Chair: Union Minister for Labour and Employment; the Ministry's Secretary is Vice-Chairperson.
Strength: 40 nominated members, including seven workers' and seven employers' representatives.
Gig and platform mode: five aggregator and five worker representatives, experts and five States by rotation replace the nominated members.
Term and meetings: three years; at least three meetings a year.
Labour Codes: four Codes replaced 29 laws; this Code subsumes nine social-security laws.
What does the National Social Security Board do?
The Board sits at the centre of the Code's design, so its powers matter more than its size.
Recommends: suitable schemes for unorganised, gig and platform workers.
Monitors: welfare schemes the Centre runs for them.
Reviews: State-level record-keeping and spending from the fund and account.
Advises: the Centre on matters of the Code's administration referred to it.
Limit: advisory only; the Centre frames and notifies the schemes.
Who counts as a gig, platform or unorganised worker?
The Board's remit rests on three overlapping definitions, which UPSC can test as look-alikes.
Term | Meaning in the Code | Example |
|---|---|---|
Gig worker | Earns from work outside a traditional employer–employee relationship | Freelancer, delivery partner |
Platform worker | Engaged in platform work, reaching others through an online platform | Ride-hailing driver |
Unorganised worker | Home-based, self-employed or wage worker in the unorganised sector; includes organised-sector workers outside ESIC and EPFO membership | Street vendor, domestic worker |
Overlap: a delivery partner is both gig and platform worker; "gig" is the wider term.
Eligibility test (proposed in draft rules): 90 days with one aggregator or 120 days across several in a year.
How does the aggregator levy for gig workers work?
Machinery alone delivers nothing, so money decides whether the Board's schemes reach anyone.
Rate: 1–2% of annual turnover, notified by the Centre; taxes and cess are excluded from turnover.
Cap: never above 5% of the amount an aggregator pays or owes to gig and platform workers.
Who pays: aggregators in the Seventh Schedule categories, such as ride-sharing, food and grocery delivery, logistics and e-marketplaces.
Start: the Centre notifies when contributions begin; schemes may also be funded by the Centre, States or CSR.
Illustration: ₹1,000 crore turnover at 2% gives ₹20 crore, but payouts of ₹200 crore cap it at ₹10 crore.
How many gig workers are there, and how many are registered?
A levy and a Board help only if workers can be found, and the counts show a wide gap.
Estimates: 7.7 million (2020-21, NITI Aayog); 12 million (FY25, Economic Survey 2025-26, as reported); 23.5 million projected by 2029-30.
Registered: about 11.5 lakh platform workers among 31.89 crore e-Shram registrations (PIB, August 2026).
Caution: years and methods differ, so treat the gap as scale, not a coverage rate.
Federal: Entry 23, Concurrent List; Rajasthan (2023), Karnataka, Bihar, Jharkhand (2025) and Telangana (2026) have own gig laws.
Way forward: one worker ID across States; portable benefits; coordinated State boards; grievance redress.
Why it matters for UPSC
GS Paper II: welfare schemes for vulnerable sections; statutory bodies. GS Paper III: inclusive growth, employment and labour reforms. Prelims: Board composition, levy numbers, definitions, Entry 23. Mains: a funding-plus-oversight design set against identification and portability gaps.
Mentor's note
Don't write that the Board pays benefits. It recommends and monitors; the Centre frames and funds schemes.
Quote the levy as two numbers. 1–2% of turnover is the rate; 5% of payouts is the cap.
Quote the identification gap with years. 11.5 lakh registered (2026) against 12 million estimated (FY25) shows scale, not coverage.
Add the ILO angle once. India has not ratified Convention 102 (1952); its delegate abstained on the 2026 platform-work Convention 193.
Prelims traps
1. The chair is the Minister, not the Secretary. The Secretary is Vice-Chairperson.
2. 5% is a cap, not the rate. The rate is 1–2% of annual turnover, and the cap is on amounts paid to workers.
3. Gig, platform and unorganised are different terms. Gig is wider than platform; unorganised is defined by sector.
4. The Board recommends and monitors. The Centre frames and notifies schemes.
5. Entry 23 is the Concurrent List. Not the Union List.
Analogy: think of the levy as a common provident pot that the platform tops up, and the Board as the advisory committee that watches the pot, not its cashier.
Practice: Prelims MCQ
Consider the following statements:
The National Social Security Board under the Code on Social Security, 2020 is chaired by the Union Minister in charge of Labour and Employment.
The Board's functions include recommending schemes for gig and platform workers and monitoring welfare schemes administered by the Centre for them.
An aggregator's contribution under the Code is fixed at 5 per cent of its annual turnover.
Social security and social insurance are in the Union List of the Seventh Schedule.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (b) Only two
Explanation:
Statement 1 is correct: the Union Labour Minister is Chairperson, and the Ministry's Secretary is Vice-Chairperson.
Statement 2 is correct: recommending schemes and monitoring Centre-run welfare schemes are among its listed functions.
Statement 3 is incorrect: the rate is 1–2% of annual turnover; 5% is a cap on the amount paid or payable to workers.
Statement 4 is incorrect: social security and social insurance are Entry 23 of the Concurrent List.
(a), (c) and (d) are incorrect: exactly statements 1 and 2 hold.
Related PYQ
UPSC CSE Mains 2021, GS Paper I:
Examine the role of ‘Gig Economy’ in the process of empowerment of women in India.
Use: link the Code's gig-worker definition, the levy and the Board to the "way forward" of this answer.
See the detailed explanations: Mains 2021 in the free PYQ vault, with year-wise analysis. Free to browse; free sign-up to download.
Practice: Mains question
Gig and platform work has grown faster than the labour laws meant to protect it. Critically examine the design of the Code on Social Security, 2020 for these workers, and suggest measures to make it effective. (Answer in 150 words; 10 Marks)
Terms to know
Aggregator: a digital intermediary or marketplace connecting users with service providers, such as ride-hailing and delivery apps
Social Security Fund: the central fund for unorganised, gig and platform workers, fed in part by aggregator contributions
e-Shram: the Aadhaar-seeded national database of unorganised workers, launched in 2021
Frequently asked questions (FAQs)
What is the aggregator contribution for gig workers under the Code on Social Security?
The Centre notifies a rate between 1% and 2% of an aggregator's annual turnover. The contribution cannot exceed 5% of the amount paid or payable to gig and platform workers. The Centre notifies when it begins.
Who chairs the National Social Security Board?
The Union Minister for Labour and Employment chairs it, with the Ministry's Secretary as Vice-Chairperson. It has a three-year term and meets at least three times a year.
Who is a gig worker under the Code on Social Security?
A person who works or takes part in a work arrangement and earns outside a traditional employer–employee relationship. A platform worker is someone engaged in platform work through an online platform.
How many gig workers are registered on e-Shram?
About 11.5 lakh platform workers had registered on e-Shram by August 2026, among 31.89 crore total registrations, according to the Labour Ministry's PIB factsheet.
60-second revision
Who chairs the Board? The Union Labour Minister; the Secretary is Vice-Chairperson.
What does it do? Recommends schemes, advises the Centre, monitors Centre-run schemes, reviews State records and spending.
Levy numbers? 1–2% of annual turnover; capped at 5% of amounts paid to workers.
Which List? Social security is Entry 23, Concurrent List.
Scale? 12 million estimated (FY25) against 11.5 lakh registered platform workers (2026).
Related reading
Sources
The Code on Social Security, 2020: official text (India Code, Ministry of Law and Justice)
5 Years of e-Shram Portal (PIB, Ministry of Labour and Employment, August 2026)
India's Booming Gig and Platform Economy (NITI Aayog policy brief, June 2022)
Code on Social Security, 2020: bill summary (PRS Legislative Research, 2020)
From The Daily UPSC Brief, 1 November 2026 — by Shivam Singh.
Spotted an error or something outdated? Tell us — we correct it.
About the author
Shivam Singh
Founder & Mentor, Minimalist IAS
Shivam has been through every stage of the exam himself — Prelims, repeated Mains attempts across UPSC and state civil services, and the interview board. For 7 years he has mentored aspirants one-to-one, helping 100+ clear various stages of the exam, including final selections.
More about Shivam →Struggling to structure answers on Gig Workers' Social Security?
Reading model answers shows the standard; writing under exam pressure reveals your actual blind spots. Write your answer to any question on Gig Workers' Social Security, upload your handwritten PDF copy, and Shivam will personally evaluate your first answer — highlighting structural flow, examiner traps, and high-yield value additions.
