Startup News 2026: Key Steps and Lessons from India's Recognition of Gig Workers and Benefits for Entrepreneurs

India’s gig economy is one of the fastest-growing in the world, yet it has long operated in a legal gray area. With more than 12 million gig workers powering platforms like Swiggy, Zomato, Uber, and Amazon, the need for formal recognition and security has become undeniable. On November 22, 2025, after five years of legislative deliberation, the Indian government enacted its new labor codes, granting gig and platform workers legal recognition for the first time. However, as significant as this step is, the road to tangible social security benefits remains riddled with challenges and uncertainties.

As someone deeply invested in entrepreneurship and economic frameworks, I, Violetta Bonenkamp, see this as a groundbreaking moment, not just for India but for the global gig economy. While the legal acknowledgment of gig workers sets an important precedent, the larger question looms: will this legislative change create stability for workers and opportunity for businesses, or will it become another toothless reform? Here's an in-depth analysis of the implications, challenges faced, and lessons for entrepreneurs navigating gig-heavy industries.

Table of Contents

A Historic Step but with Complex Caveats

The Code on Social Security, 2020, finally brought into effect in late 2025, formally defines gig and platform workers in India, requiring platforms to contribute to a government-managed Social Security Fund. The government expects platforms to allocate 1–2% of their annual turnover but caps this at 5% of payments made to gig workers. This is a much-needed framework to ensure basic benefits like insurance, provident funds, and pensions, which were previously nonexistent for these workers.

But as an entrepreneur, one thing stands out to me, the implementation details remain largely undefined. For instance, when will workers see the benefits? There’s no clarity on when operational frameworks will be ready or how contributions will be tracked for workers often engaged with multiple platforms. For tech founders, this signals an urgent need to develop systems to track and manage worker contributions seamlessly.

The Importance of Gig Workers for Entrepreneurs

India’s gig workforce is a powerhouse for entrepreneurial ventures. For startups providing quick-delivery services, like Zepto or Blinkit, gig workers are the backbone of operations. Similarly, major international companies like Amazon and Uber rely heavily on India's pool of gig workers, which primarily consists of youth and migrants with few formal job opportunities. The introduction of formal legal status opens up possibilities for streamlining worker policies and improving workforce retention.

However, this labor model remains a delicate equilibrium between affordability and fairness. Startups must carefully assess how mandatory social security contributions will affect their thin margins. A significant burden of new costs might lead platforms to pass expenses onto customers, a classic domino effect where end-users bear the cost of reforms meant to protect workers.

The Gig Economy Gap: Statistics and Insights

Scale of the Economy: India has over 12 million gig workers, a number projected to double by 2030. The rapid expansion of ride-hailing, food delivery, and e-commerce sectors significantly fuels this growth.
Social Security Coverage: Despite the new codes, 77% of India’s gig workers remain without access to formal social security benefits. The core issue lies in low registration rates on the E-Shram portal, where only around 300,000 gig workers have signed up so far.
Economic Importance: Platforms like Swiggy, Ola, and Dunzo directly contribute to India’s urban logistics market, with revenues expected to exceed $10 billion annually by 2026. However, sustained growth requires tackling inequities in gig work.

These numbers reveal both opportunity and risk. Entrepreneurs aiming to build businesses heavily reliant on gig work must proactively address these gaps, possibly even designing in-house benefits programs to preempt compliance issues.

How Entrepreneurs Can Adapt

Navigating the changing gig landscape requires foresight and strategy. Here’s a step-by-step approach entrepreneurs and startup founders can take:

Develop Compliance Systems: Invest in tech platforms to track and manage worker contributions to avoid clashes with emerging regulations. Platforms like Convoboss offer AI-powered management tools for gig operations.
Innovate Worker Benefits: Think beyond the social security fund. Offering perks like healthcare discounts, payout advances, and skills training could become a competitive advantage in retaining gig workers.
Collaborate with Labor Boards: Engage with state-level social security authorities to co-develop digital compliance systems that simplify reporting requirements for aggregators.
Focus on Flexibility: Maintain operational flexibility by creating multi-tiered contracts for workers based on their availability and contribution levels, ensuring regulatory gaps don’t hinder service delivery.
Prepare for Cost Adjustments: Be transparent with customers regarding minor price increases necessitated by new regulations. Highlight your business's role in supporting equitable labor practices as a differentiator.

Common Mistakes to Avoid

Underestimating Worker Sentiment: Gig workers often face unreliable income and unsafe working conditions. Ignoring these concerns could lead to strikes, negatively impacting operations.
Delaying Compliance: Waiting for detailed government notifications before acting could be costly. By the time rules are enforced, reactive measures might prove insufficient.
Overcomplicating Benefit Distribution: Complex eligibility criteria or excessive data demands for claiming benefits could alienate workers and undermine the entire system. Keep the process straightforward.

Lessons from Europe for India’s Gig Economy

As a European entrepreneur, I can’t help but draw parallels with how gig work has evolved here. The push in the UK for ride-hailing drivers to gain employee benefits or Spain’s legal mandate to classify delivery workers as employees mirrors ongoing challenges in India. That said, India’s approach, recognizing gig workers as a distinct category, could lead to a new global standard. Rather than forcing full employment models, it acknowledges the unique complexities of gig work and aims for a middle ground.

For global entrepreneurs expanding into India, the new reforms serve as a critical heads-up. Establishing legal clarity on worker classifications quickly, before regulatory surprises arise, will save both time and resources.

Conclusion: The Path Forward

India’s recognition of gig workers marks a monumental shift, but for millions of workers, tangible benefits remain distant. As businesses, governments, and industry leaders grapple with implementation, it’s crucial to focus on designing sustainable frameworks. Entrepreneurs operating in the gig economy can seize this moment to innovate, not just for compliance but also for improving worker conditions and rethinking labor models.

For founders like me, who build businesses with both profit and social impact in mind, this change is an opportunity. By proactively tackling labor inequity, we can help shape an economy that supports flexibility, fairness, and growth. To that end, platforms enabling change, like the E-Shram portal, labor tech solutions, and government collaborations, will be essential tools in navigating this evolving landscape.

The question isn’t whether this will increase costs or complexity, it most certainly will. The real challenge is how to adapt responsibly while staying ahead of the curve. The time to act is now.

FAQ

1. What legal changes have recently been made for gig workers in India?
India implemented the Code on Social Security 2020 on November 22, 2025, giving gig and platform workers legal recognition for the first time. Read about the Code on Social Security

2. How many gig workers are there in India, and how is this expected to grow?
India currently has over 12 million gig workers, with projections estimating the number will double by 2030. Explore India’s growing gig workforce

3. What responsibilities do platforms like Swiggy and Uber have under the new labor laws?
Platforms must contribute 1–2% of their annual revenue, capped at 5% of payments to gig workers, into a social security fund. Understand platform obligations under the new laws

4. What benefits are gig workers entitled to under the new law?
The Code on Social Security ensures benefits like insurance, provident fund, and pensions for gig workers, although implementation details remain unclear. Learn about gig worker benefits

5. What challenges exist in implementing social security for gig workers?
Implementation challenges include a lack of operational frameworks, low worker registration on the E-Shram portal, and complications with multi-platform worker tracking. Delve into the implementation challenges

6. What are gig workers and unions demanding beyond the current reforms?
Unions and workers demand recognition as employees, minimum wages, and enforcement of aggregator contributions. Read about worker and union demands

7. How does India's approach to gig worker classification differ from other countries?
India classifies gig workers as a distinct category, unlike Spain or the UK, which move workers toward employee status. Explore global comparisons

8. Which states in India might implement these reforms faster?
States like Karnataka may prioritize faster implementation, while others like Rajasthan have faced delays with similar reforms. Learn about state-level variations

9. How are platforms like Amazon and Zepto reacting to the reforms?
Companies like Amazon are reviewing the changes, while Zepto and others welcome the reforms but emphasize the need for business flexibility. Check how platforms are responding

10. What steps can entrepreneurs take to adapt to the changing gig economy?
Entrepreneurs should invest in compliance systems, innovate worker benefits, and actively collaborate with labor boards. Explore strategies for entrepreneurs

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.

Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain

Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.

CAD Sector:

Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.

IP Protection:

Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.

Blockchain:

Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.

Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.

For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.

About the Publication

Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.

Mission and Purpose

Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.

Key Features

The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:

Skill Lab: Micro-modules covering essential startup skills
Virtual Startup Building: Create or join startups and tackle real-world challenges
AI Co-founder (PlayPal): Guides users through the startup process
SANDBOX: A testing environment for idea validation before launch
Wellness Integration: Virtual activities to balance work and self-care
Marketplace: Buy or sell expert sessions and tutorials

Impact and Growth

Since its inception, Fe/male Switch has shown impressive growth:

5,000+ female entrepreneurs in the community
100+ startup tools built
5,000+ pieces of articles and news written
1,000 unique business ideas for women created

Partnerships

Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.

Recognition

Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.

Startup News: Key Steps and Lessons from India’s Recognition of Gig Workers and Benefits for Entrepreneurs