Gig Vs. Salaried: As India’s labour market undergoes a structural shift, the widening social security gap between gig workers and salaried employees has emerged as a critical policy challenge ahead of
the Union Budget 2026. With the gig workforce projected to touch 23.5 million by 2030, the absence of institutional protections for this segment is drawing sharper scrutiny from industry bodies and business leaders.
Unlike salaried employees covered under EPFO, ESI, and gratuity frameworks, most gig workers operate without health insurance, pension support, or accident cover. Income volatility and limited access to safety nets have heightened vulnerabilities, especially as digital platforms and urban services increasingly rely on flexible labour.
According to Suchita Dutta, Executive Director of the Indian Staffing Federation, Budget 2026 presents an opportunity to translate intent into impact by strengthening the National Social Security Fund envisaged under the Social Security Code, 2020. She notes that recent draft rules mandating platform contributions of 1–2% of revenue and eligibility thresholds of 90–120 days are positive signals, but warns that without meaningful budgetary allocation, the fund risks remaining under-resourced.
ISF expects the government to prioritise targeted funding for accident insurance, pensions, maternity benefits, and health coverage, potentially through integration with schemes such as PM-JAY. The federation also advocates for portable benefits, uniform wage ceilings, and incentives for skill upgradation to bring gig roles closer to formal employment norms.
Echoing similar concerns, Piyush Jhunjhunwala, CEO and founder of Stockify, said the difference in social security coverage remains one of the most significant divides between gig and salaried workforces. “Regular employees typically receive provident fund benefits, medical insurance, paid leave, and pensions, while gig workers receive little protection against health issues, retirement, or unemployment,” he said.
Jhunjhunwala added that Budget 2026 could be transformative if it enables affordable, digitally managed social security systems for gig workers, supported by contributions from workers, platforms, and aggregators. He stressed that beyond financial mechanisms, worker dignity and safety must be central to policy design.
While full parity may take time, industry stakeholders believe strategic investments, tax incentives for compliant firms, and skill-linked formalisation measures in Budget 2026 could significantly narrow the divide—supporting inclusive growth as India moves toward its $5 trillion economy ambition.
