Gig Worker Payroll in India: Payments, TDS and Social Security Under the Labour Codes
27 October 2026
Gig and platform workers are not employees, but paying them is no longer a simple vendor payment. The Code on Social Security, 2020, now in force as part of the Labour Codes, recognises gig and platform workers and requires aggregators to fund their social security. Some states have added their own laws on top.
This guide covers what businesses that pay gig workers need to get right.
Who counts as a gig or platform worker
The Code on Social Security defines a gig worker as someone who performs work and earns from it outside a traditional employer-employee relationship. A platform worker is a gig worker who finds work through an online platform. An aggregator is the digital intermediary connecting them with customers, such as delivery, ride-hailing and home-services platforms.
Classification matters. If a worker is controlled like an employee, with fixed hours, supervision and exclusivity, labour authorities may treat them as an employee, with PF, ESI and other employee obligations.
Aggregator social security contributions
The Code requires aggregators to contribute to a social security fund for gig and platform workers at 1% to 2% of annual turnover, capped at 5% of the amount paid or payable to gig and platform workers. The exact rate is set by government notification, so check the current rules for your sector.
Gig and platform workers can register on the government's e-Shram portal, and the Union Budget 2025-26 announced identity cards and health coverage under PM-JAY for registered platform workers.
State gig worker laws
Rajasthan (2023) and Karnataka (2025) have passed laws for platform-based gig workers that require registration and a welfare fee from aggregators, and other states are considering similar laws. If you operate in these states, you may owe both the central contribution and a state welfare fee.
TDS on gig worker payouts
Payments to gig workers are generally contractor or professional payments, so TDS applies once payments cross the thresholds in the Income-tax Act. The Income-tax Act, 2025, effective 1 April 2026, renumbered the TDS provisions, so update section references in your systems and contracts. Workers need payout statements and TDS certificates to claim credit.
Running gig payouts correctly: a checklist
Document the engagement model so classification is defensible
Collect PAN and bank details at onboarding, and apply higher TDS where PAN is missing
Run payouts on a fixed cycle with clear statements for each worker
Deduct and deposit TDS on time, file TDS returns and issue certificates
Calculate and pay aggregator contributions and any state welfare fee
Keep records by state, since state laws differ
Review regularly as rules under the Labour Codes are still being notified
Frequently Asked Questions
Not as employees. Gig and platform workers are covered through the social security fund under the Code on Social Security, funded partly by aggregator contributions. If a worker is in practice treated like an employee, PF and ESI obligations may apply.
Under the Code on Social Security, aggregators contribute 1% to 2% of annual turnover, capped at 5% of the amount paid or payable to gig and platform workers, at the rate notified by the government.
Generally yes, as contractor or professional payments once the thresholds in the Income-tax Act are crossed. Section numbers changed under the Income-tax Act, 2025, effective 1 April 2026.
Conclusion
Gig payouts now carry tax, central social security and, in some states, welfare fee obligations. Get classification and records right early. Resolve's payroll and compliance teams can run high-volume payouts and the filings around them.
Need help with this?
Resolve can set up gig payouts with correct TDS, aggregator contributions and state compliance, and run them every cycle.