ETERNAL

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SWIGGY

, Zepto to Contribute to Gig Worker Benefit

India’s Ministry of Labour and Employment has rolled out a landmark policy under the Code on Social Security (2020), mandating online aggregators to contribute up to 2% of their annual turnover toward gig and platform worker welfare. The move aims to formalize protections for millions of delivery riders, freelancers, and digital workers. Platforms like

, , and Zepto must contribute up to 2% of their annual turnover, capped at 5% of total payments made to gig workers. This contribution will feed into a dedicated Social Security Fund, marking a significant step toward institutionalizing worker protections in the gig economy. Gig and platform workers will receive an Aadhaar-linked Universal Account Number, enabling seamless access to welfare benefits across states. This portability is crucial for a highly mobile workforce and ensures continuity of coverage despite frequent job changes or migration. The new code formally defines ‘aggregator’, ‘gig worker’, and ‘platform worker’, bringing clarity and legal recognition. It extends social security benefits such as provident fund, insurance, and ESIC coverage to these workers, aligning them closer to formal sector protections. The initiative targets freelancers, consultants, and other non-traditional workers who previously fell outside the purview of labor laws. By creating a structured welfare framework, the government aims to reduce precarity and improve long-term financial security for millions. While the policy is progressive, implementation will require robust digital infrastructure, aggregator compliance, and worker awareness. Aggregators may face short-term cost pressures, but the long-term impact could be a more stable and motivated workforce, enhancing service quality and retention.