India's gig economy is rapidly expanding, but a significant gap persists in social security benefits between gig workers and those in traditional salaried employment. As Finance Minister Nirmala Sitharaman prepares to present Budget 2026, a key question is whether the government can effectively address this disparity.

The gig economy has witnessed structural growth, integrating informal jobs into ecosystem roles. The Economic Survey 2026 highlights that the number of gig workers in India rose from 77 lakh in FY21 to 120 lakh in FY25, a 55% increase. This workforce now constitutes over 2% of India's total workforce and is projected to reach 6.7% by FY30, contributing an estimated Rs 2.35 lakh crore to the GDP. NITI Aayog estimates that the gig workforce will expand to 2.35 crore workers by 2030. E-commerce is the largest employer in the gig sector, with 37 lakh workers, followed by logistics (15 lakh), retail (10 lakh), and manufacturing (10 lakh).

Despite the gig economy's growth, a large percentage of workers are vulnerable due to income volatility, lack of social security, and algorithm-driven work allocation. The Economic Survey 2026 reveals that about 40% of gig workers earn less than Rs 15,000 per month. This income level creates challenges in accessing credit and financial services. Gig workers often lack employment benefits such as social security, paid leave, minimum hours, and health coverage, leading to job insecurity and lower incomes.

Budget 2026 could potentially remove the minimum working day threshold of 90/120 days to avail social security benefits. Experts believe the current worker engagement time of 90/120 days could make most gig workers ineligible for social security benefits because of the high threshold level. As per the Eternal CEO, Deepinder Goyal average delivery partner on its platforms worked just 38 days and 7 hours per working day in 2025, with only 2.3% working more than 250 days annually. Hence, removing the 90/120-day eligibility threshold could help increase the reach of social security benefits to workers.

The Economic Survey 2026 and experts suggest several measures to address the social security gap. These include:

• Expanding Social Security Coverage: Strengthening social security coverage to include provident fund, insurance, and maternity benefits is essential. The Code on Social Security (CSS) formally recognizes gig and platform workers, which is a step towards expanding social security, welfare funds, and benefit portability.
• Ensuring Fair Wages: Setting minimum per-hour or per-task earnings, including waiting time compensation, can help reduce the cost disparity between regular and gig work.
• Improving Access to Finance: Addressing income volatility and "thin-file" credit histories can improve gig workers' access to formal finance.
• Promoting Algorithmic Transparency: Addressing algorithmic biases and promoting worker-friendly practices in work allocation and performance monitoring is crucial.
• Upskilling and Training: Investing in skilling and training programs can help gig workers move into better-paying and more secure jobs. Platforms and employers can co-invest in assets and training to facilitate this.
• Promoting Pension Schemes: Expanding interoperability across the National Pension System (NPS), Atal Pension Yojana (APY), and other schemes will support seamless portability as workers shift sectors or migrate. Engaging with state governments, cooperatives, farmer networks, and gig-platform companies can ensure last-mile reach.
• Safety and Working Conditions: Announcing measures to improve the safety and working conditions of gig workers, ease delivery targets, and provide general advisories to quick-commerce platforms could be beneficial.

Budget 2026 faces the critical task of balancing the growth of the gig economy with the need to provide social security and fair working conditions for gig workers. Clear policy direction, tax incentives, better Centre-State coordination, and integration with disaster management frameworks are crucial for moving from reactive relief to proactive income protection. By implementing the measures suggested by the Economic Survey and experts, India can strive to close the social security gap between gig and salaried workers, ensuring a more equitable and secure future for its flexible workforce.