New draft rules mandate 90 days of continuous employment for select benefits, reshaping eligibility, compliance, and record-keeping norms for India’s gig economy.
The central government has proposed a 90-day minimum work rule for gig and platform workers to access certain social security benefits, as part of new draft rules under the Social Security Code. This move aims to standardize benefit eligibility, safeguard worker interests, and streamline employer compliance across India’s fragmented labour market.
The rule marks a notable shift from earlier norms, where some benefits were available from day one of employment.
“The reform is meant to reduce disputes over casual employment and bring consistency to benefit disbursal,” said a senior Ministry of Labour official.
What Does the 90-Day Rule Mean?
Under the draft provisions, gig workers must complete at least 90 days of continuous work with an employer to qualify for specific benefits, such as:
- Compensation-linked payouts (e.g., for injury or termination)
- Statutory protections and insurance entitlements tied to average daily wages
Key implications:
- Workers leaving or removed before 90 days may forfeit eligibility for these benefits.
- Daily wage-linked benefits will only kick in after the 90-day threshold.
- Employers must maintain detailed records of employment dates, wages, and attendance.
This requirement doesn’t apply to wages, which must be paid from day one.
Why It Matters for Workers and Employers
For India’s growing gig workforce—over 7.7 million workers as per NITI Aayog estimates—the rule signals a greater emphasis on continuity of employment over transient gigs. While the intent is to filter out short-term or sporadic work, critics argue it may exclude a large chunk of the gig workforce from meaningful protection.
For employers, particularly startups and MSMEs, the rule raises the bar on:
- Compliance and documentation
- HR systems for onboarding and tracking gig engagements
- Potential increase in compliance costs for companies built on short-term hiring models
Is this trade-off between streamlining benefits and reducing flexibility a necessary compromise—or a step back for gig worker protections?
The 90-day clause is part of a wider reform package under the Social Security Code, which is finally seeing operationalization after the labour codes were rolled out in November 2025, replacing 29 legacy laws.
Other key changes in the draft rules:
- Digital registration of all establishments
- Mandatory online returns and filings
- Time-bound approvals for registrations—some deemed automatic if not processed on time
- Cancellation of registrations for inactive or non-compliant establishments
Together, these measures aim to create a centralized, digital-first labour compliance framework, while improving transparency and timelines for both businesses and workers.
The Road Ahead
The proposed rules have been opened for public consultation, and once finalized, states must align their frameworks with the central code. For employers, especially in gig-heavy sectors like logistics, delivery, and app-based services, the rule signals a move toward formalization.
“The 90-day rule is just one piece of a larger puzzle. As India reshapes its labour landscape, clarity, portability, and fairness must guide the rollout,” said a labour policy analyst.
Ultimately, the government is walking a tightrope: balancing worker security with ease of doing business, in one of the world’s most dynamic labour markets.
TL;DR:
The Indian government has proposed a 90-day minimum work requirement for gig workers to qualify for certain social security benefits under the draft Social Security Code rules. The move aims to streamline eligibility, formalize employment, and enforce better record-keeping among employers. Public feedback is open before final notification.
