National Social Security Board for Gig Workers, Know About Its Structure & Function

National Social Security Board for Gig Workers, Know About Its Structure & Function 

General Studies Paper II: Social Welfare, Gig Economy

Why in News?

Recently, the Ministry of Labour notified the constitution of the National Social Security Board (NSSB) for Gig & Platform Workers.

What is the National Social Security Board (NSSB)?

• About: The National Social Security Board is a statutory apex body established to bridge the social safety net gap for the nation’s informal workforce.
  • It explicitly targets digital gig and platform professionals without disrupting their flexible working models.
• Objective: The primary objective of the board is to provide formal social security benefits, including health, life, disability, accident, and old-age protections, to vulnerable labor segments.
• Legal Framework: The board operates under the statutory authority of Section 6 of the Code on Social Security, 2020.
  • This is the modern code that unified and repealed nine historical pieces of labor legislation, including the pioneering Unorganised Workers’ Social Security Act of 2008, to create a universal protection matrix.
    • The statutory framework was enacted in September 2020. The Code came into force on 21 November 2025.
• Nodal Agency: The administrative and executive operations of the board are completely governed by the Ministry of Labour and Employment.
  • This ministry will act as the regulatory backbone, prescribe all statutory rules of business and official compliance procedures.
• Composition: The board will utilize a tripartite governance model comprising 40 distinct members (unorganised workers).
  • Board for Gig & Platform Workers will comprise 22 members to integrate digital and platform-based workers into formal welfare programs.
  • The Union Minister for Labour and Employment will serve as the ex-officio Chairperson, the Ministry’s Secretary will act as Vice-Chairperson, and the remaining 40 nominated members represent central ministries, state governments, employers, civil society, digital aggregators, and labor unions. 
  • It will include aggregator companies (such as Zomato/Eternal Group, Swiggy, Zepto, Urban Company, and Rapido).
• Mandates: The core mandate is to institutionalize welfare architectures and secure funding mechanism allocations for non-traditional labor arrangements.
  • The board has a statutory tenure of three years and must meet at least three times annually. 
  • Its members must include adequate representation of Scheduled Castes, Scheduled Tribes, minorities and women.
• Functions: 
  • The board will function to recommend customized social security and welfare schemes to the Central Government. 
  • The board will provide strategic advice to the Union Government on administrative issues arising from Code implementation.
    • This may involve addressing regulatory challenges, legal interpretation bottlenecks, and operational friction points across industries. 
  • The board will maintain continuous oversight by monitoring centrally administered social welfare programs. 
  • The board is tasked to review the localized record-keeping functions managed by individual State Governments.
    • This will include verifying worker databases, tracking registration numbers, and ensuring proper data synchronization with the central e-Shram portal architecture.
  • The board will evaluate financial sustainability by reviewing expenditures from the designated social security fund and accounts.
  • The board will retain the versatility to undertake miscellaneous auxiliary tasks and duties. 

Note: A gig worker is an individual who earns income through short-term, project-based, or task-based work outside of a traditional, long-term employer-employee relationship

Significance of the National Social Security Board’s Constitution

• The Board strengthens the institutional framework for extending life and disability cover, accident insurance, health benefits, maternity protection, old-age security and crèche facilities.
  • According to NITI Aayog‘s 2022 report, India had an estimated 77 lakh gig workers in 2020–21, projected to reach 2.35 crore by 2029–30. 
  • 47% medium-skilled workers, 22% high-skilled workers, and 31% low-skilled workers.
  • High concentration in retail trade and sales (2.66 million), transportation (1.3 million), finance and insurance (0.63 million), and manufacturing (0.62 million).
• The Board helps bridge the institutional gap between conventional employment and flexible work arrangements.
  • It recognises the need for welfare mechanisms that do not depend exclusively on traditional employer–employee relationships.
• Access to insurance, pensions, healthcare and maternity protection can reduce household vulnerability, prevent distress borrowing and protect workers against income shocks.
  • It encourages shared responsibility between government, platform companies and workers, rather than placing the entire welfare burden on individuals.
• Women, migrant workers and disadvantaged communities often face additional barriers to formal employment protection.
  • Adequate representation and targeted welfare schemes can improve equitable access, maternity protection and financial independence.
• Digital registration and coordinated welfare delivery can help migrant workers access benefits across geographical locations.
  • It can help ensure that India’s digital and service-sector expansion produces decent livelihood opportunities alongside economic growth.
    • Many workers face high operational costs (fuel, vehicle maintenance) and fluctuating incentive structures.
    • Opaque ratings, automated task allocation, and arbitrary account suspensions impact day-to-day stability.
• Under the Code, aggregators must contribute 1% to 2% of their annual turnover to the social security fund. This Board will outline the framework for the proper utilization of that fund.
  • A centralized Social Security Fund has been established to bankroll upcoming welfare schemes.

Government Policies and Initiatives for Gig Workers

• The e-Shram portal acts as the central national database to register informal workers. Registered users receive an Aadhaar-linked Universal Account Number (UAN) and a digital identity card. This configuration ensures seamless, cross-platform portability of benefits when workers switch jobs.
• Budgetary initiatives expanded health security by linking the e-Shram registry with the Ayushman Bharat (AB-PMJAY) scheme.
  • Eligible digital platform professionals and informal labourers receive up to ₹5 Lakh per year in free, cashless health insurance.
  • Additionally, workers gain access to mandatory free annual health check-ups.
• Through the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme, the government secures post-retirement livelihoods.
  • Workers aged 18 to 40 years with a monthly income under ₹15,000 can enroll. 
  • They receive an assured monthly pension of ₹3,000 after turning 60, backed by equal government matching contributions.
• Pradhan Mantri Jeevan Jyoti Bima Yojana (2015) provides life insurance coverage of ₹2 lakh against death due to any cause for eligible subscribers aged 18–50 years, subject to scheme conditions and annual premium payment.
• Pradhan Mantri Suraksha Bima Yojana (2015) provides accidental insurance coverage of ₹2 lakh for accidental death or full disability and ₹1 lakh for partial disability to eligible subscribers aged 18–70 years.
• States like Rajasthan (Rajasthan Platform-Based Gig Workers Act, 2023), Bihar (2025 Act), and Karnataka have introduced localized welfare boards and registration frameworks.

Frequently Asked Questions (FAQs):

1. What is the National Social Security Board for gig workers?
A statutory body advising the government on social security schemes for gig and platform workers.

2. Why has the government set up the NSSB?
To strengthen social protection, address employment insecurity and improve welfare coverage among India’s expanding informal workforce.

3. Who are gig workers in India?
Workers earn through temporary, flexible or task-based arrangements, generally outside traditional employer–employee relationships.

4. What social security benefits may gig workers receive?
Life insurance, accident coverage, health benefits, maternity protection, old-age security and crèche facilities under notified schemes.

5. How could the NSSB improve the welfare of unorganised workers?
By recommending welfare schemes, monitoring implementation, reviewing expenditure and promoting coordinated, inclusive social security coverage.

Disclaimer: Information in this article is based on official announcements and public records. Details may evolve over time.

Also Read: Gig Economy in India