Gig workers are people such as delivery riders and cab drivers who are not employees of a company but independent workers, paid for each job they do. The company's app gives them jobs and sets the pay. Gig work is part of the platform economy, and in India many states are now writing laws about gig workers' pay and rights.
Here is how it works in general. A worker signs up on the platform, completes identity checks and chooses when to log in. The app offers jobs, and the worker accepts or declines them. After each job, the platform pays the worker a fee set by its rules, minus its own commission. Because the worker is not an employee, the platform does not usually pay a monthly salary, leave or provident fund. The worker pays for the vehicle, the fuel and the phone. Some state laws, such as those in Rajasthan and Karnataka, now require platforms to pay into a welfare fund.
The customer pays the platform, and the platform pays the worker. The worker's real earning is lower than the pay for each order, because the worker pays for fuel, vehicle instalments, phone data and the hours spent waiting without an order. The Code on Social Security, 2020 came into force on 21 November 2025. It recognises gig and platform workers. It lets the central government ask each platform to pay 1% to 2% of its yearly turnover into a social security fund. The payment is capped at 5% of what the platform pays its gig workers. Workers can register on the government's e-Shram portal. The government has not yet notified the exact rate or the date from which platforms must pay.
Take, for example, a food-delivery rider who logs in at 7 pm and accepts orders near the restaurant. Each order pays ₹40 to ₹60; see food delivery apps and quick commerce apps. Consider a cab driver who owns a car and drives for a ride-hailing app. Imagine a home-service worker, such as a beautician, who takes bookings through an app; see home services apps.
Gig work depends on the network effect of the platform, and on the platform's dynamic pricing of jobs. Some workers can be paid sooner through earned wage access. Questions of fairness are studied in trust and safety and in digital public infrastructure debates.
How is it different from employment? An employee has a fixed salary and benefits, and the company controls the hours. A gig worker chooses when to work but earns only for each job done.
Appears in
- Ride-hailing app↗ Urban mobilityA driver in Bengaluru logs in when they wish and is paid for each trip, with no monthly salary.
- Driver on demand↗ Urban mobilityA trained driver is booked for four hours to drive a customer's car to a wedding and is paid for those hours.