Written by Piyush mani Tripathi student at INDIAN INSTITUTE OF LEGAL STUDIES, SILIGURI
Introduction–
Do you know about the gig economy? Yes, it is a market system that mainly depends on temporary and part-time jobs instead of traditional full-time employment or the conventional employer-employee system. In simple terms, gig work is also known as freelancing job’s, which includes services such as food delivery and digital works. The gig market system has played a vital role in the growth of the economy and has introduced significant changes.
Talking about India, over the past few years, the gig working culture has been booming. If you refer to NITI Aayog’s report titled “ India’s Booming Gig and Platform Economy” you will see that before the COVID-19 pandemic, there were around 3 million gig workers in India, which increased to 7.7 million (77 lakh) in 2021. This number continues to rise.¹
The main reason behind the booming gig working culture in India is unemployment.Apart from unemployment, the gig system offers an easy hiring and easy firing process. In this system, if an employee is not working properly, it is easy to immediately remove them and, if required, the company can quickly appoint someone else. This creates convenience for both employers and employees. Additionally, in the gig working system, workers have the option to take up multiple jobs or do gig work as part-time employment for extra income. It also offers the flexibility to work from anywhere depending on the nature of the job, and the working hours are often flexible.But, as we know, every coin has two sides. The other side of gig working culture is very dark and disappointing.
Unfair Working and Wage Conditions of Gig Workers-
We can broadly divide gig workers into two main categories:
- Service-based gig workers
- Knowledge-based gig workers
Service-based gig workers include those who are unskilled or semi-skilled, commonly referred to as blue-collar workers. On the other hand, knowledge-based gig workers include individuals engaged in highly skilled and highly qualified jobs such as data scientists, AI trainers, consultants, etc., who are also known as white-collar workers.
Since white-collar workers receive adequate income and have access to multiple opportunities—due to the high demand and low supply of highly skilled labour—their working conditions are relatively better. However, if we look at the condition of service-based gig workers, such as those involved in food delivery services and other delivery-related jobs, they face multiple difficulties, including very inhuman working schedules.
Therefore, this research primarily focuses on the working conditions and wage-related issues of service-based, or blue-collar, gig workers. The problem associated with service based gig worker are large in numbers some of them are following-
1. Exhausting Working Conditions and Long Hours– Particularly those involved in delivery services like food delivery and app-based transportation, service- based gig workers sometimes deal with quite demanding working conditions. Usually riding for 8 to 11 hours a day these workers reach their daily targets. Many food delivery app have rules like “delivery within 30 minutes,” and the pressure to reach these targets mostly rests on the shoulders of the delivery personnel . This compels them to engage in over speeding and choose dangerous paths , which increasing the risk of accidents.
A National Council of Applied Economic Research (NCAER), analysis indicates that workers of app-based food delivery platform work approximately 69.3 hours per week. In contrast, if you see the Periodic Labour Force Survey suggests that the average working hours for a worker should be around 56 hours per week. Which clearly indicates that delivery workers are putting in nearly 23% more working hours than the standard, clearly reflecting the inhumane and exploitative nature of their working conditions.²
2. Financial Challenges and Income Fluctuation – According to a report by NCAER (National Council of Applied Economic Research), which is a prominent think tank, food delivery platform workers in India work an average of 69.3 hours per week—23% more than the average reported in the Periodic Labour Force Survey (PLFS). This is not a single example ; there are large number of gig workers nationwide put in lengthy and taking workdays.
Even though working much harder, their pay is very less. According to a report by Business Manager,³ the average monthly salary for a service-based gig worker is approximately ₹18,000, which is incredibly very less considering the amount of time and effort required.
As most of the app based gig workers do not receive a fixed salary. Their earnings are usually depend upon completion of specific targets or tasks, which leads to significant income fluctuation. This lack of income stability is one of the major financial difficulties faced by gig workers. Overall, it is estimated that Approximately 75% of Indian gig workers face financial challenges.⁴
3. Lack of Legal Protection and Gig Workers’ Rights- Because they do not fit into the traditional employee- employer framework, gig workers in India are still unprotected by traditional labour laws.Widespread discrimination, suchas wrongful termination as per the comfort and need of employer and denial of basic benefit like Health Insurance ,paid leave and retirement benefit this caused by not having proper legal Framework for gig workers.
Although Section 2(35) of the Code on Social Security, 2020,⁵ introduced by the Ministry of Labour and Employment, defines a gig worker as “a person who performs work or participates in a work arrangement and earns from such activities outside of the traditional employer-employee relationship.” While the Code mentions provisions for old-age protection, disability coverage, and accident insurance, but still it is not implemented adequately.
However Few state have taken independent initiatives specifically Rajasthan government enacted “the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act” on July 24, 2023, and becoming the first state having legislation specifically for service based gig workers. However, taking stapes from the end of few states is not enough. there for acomprehensive, uniformly implemented national legal framework is essential to ensure fair working conditions, wages, and Rights for gig workers across the country.
4. Unionization and lack of Collective Bargaining in the Gig Economy- Unlike workers in traditional employment settings, gigworkers are addressed asindependent contractors, partners, Captain and platform workers to separate them from the traditional employee- employers system to avoid the liability of employers or companies such as minimum wage,overtime pay, retirement plans, health insurance and even the right of collective bargaining for the workers right and such limitations has created a power imbalance between the online platform based company and their workers. Because of not recognized by Labour Law as employees it is difficult for gig workers to legally form or join Union most of the gig workers are inherently isolating delivery agents, drivers and freelancers often work alone and have very less interaction in a group which reduce their opportunity for collective mobilization to protest for their right even when workers attempt to speak out and try to organise collective bargaining often face account suspensions, reduced assignment or even deactivation by platform. Despite these challenges in few cities of India gig workers started to create unions and an organise themselves by using digital tools and social media various WhatsApp groups and regional unions were increasingly being used to share grievances and to co-ordinate protest some of the known example of Union for gig workers are Indian Federation of app-based transport workers( IFSC )and Gig worker Association (GWA) are the unions that organise strikes and advocate for the rights of app-based transport workers as a result of it in Different cities of India like Bangalore and Delhi the app-based workers are protesting for their right.
5. Gig Work as a Primary Source of Livelihood- In India, due to the high rate of unemployment, app-based gig work has become one of the easiest employment options for the youth. After the COVID-19 pandemic, a significant portion of the young population really on gig work, such as app-based delivery services, for their livelihood.
According to the Oxford Internet Institute’s Online Labour Index, India accounts for the largest supply of online labour, contributing around 24% of the overall global market share.⁶ This clearly indicates that, in India, gig work is not merely treated as a part-time opportunity but is increasingly being taken up as a full-time job to fulfil basic livelihood needs.
Conclusion-
Overall it is seen that due to unemployment a large number of the population depend upon gig work as a full-time job to fulfil their basic livelihood needs but due to the absence of a proper legal framework, the service-based gig workers Often lack the opportunity for collective bargaining by way of forming and join Union and are continuously exploited by the employers and their continuously facing discriminations and unfair termination and working conditions an additionally there also deprived of the basic facility which is given to the traditional full-time worker such as retirement benefits, Health Insurance, and paid leave etc. despite of working so harder they facing financial difficulties. Therefore, a comprehensive and enforceable uniform legal framework is urgently needed.
References –
- NITI Aayog, India’s Booming Gig and Platform Economy: Perspectives and Recommendations on the Future of Work 3 (June 2022), https://www.niti.gov.in/sites/default/files/202306/Policy_Brief_India’s_Booming_Gig_and_Platform_Economy_27062022.pdf.
- More Qualified food Delivery workers Earn Lower than Urban Peers: NCAER, The Times of India (May 24, 2025), https://timesofindia.indiatimes.com/business/india-business/more-qualified-food-delivery-workers-earn-lower-than-urban-peers-ncaer/articleshow/103151884.cms.
- Average Gig Workers Earns ₹18k per Month: Report, Business Manager (May 24, 2025), https://www.businessmanager.in/average-gig-worker-earns-18k-per-monthreport/#:~:text=Average%20gig%20worker%20earnings%20are,%2Dper%2Dtask’%20models.
- 75% Indian Gig workers face financial challenges, BW People (May 24, 2025), https://www.bwpeople.in/article/75-indian-gig-workers-face-financial-challenges-503380.
- The Code on Social Security, No. 36 of 2020, § 2(35), India Code (2020).
- India Largest Supplier of online labour, BW Businessworld (May 24, 2025), https://www.businessworld.in/article/india-largest-supplier-of-online-labour-122508.