In a significant policy move to strengthen social security for India’s expanding gig workforce, the government has directed online aggregators — including Zomato, Swiggy and Zepto — to contribute up to 2% of their annual turnover towards welfare schemes for gig and platform workers. This contribution will be capped at 5% of the total payments made by these platforms.
The announcement coincides with the rollout of the four Labour Codes on Friday, including the landmark Code on Social Security (2020), which formally defines aggregator, gig worker and platform worker for the first time.
According to the Ministry of Labour and Employment, the Social Security Code aims to extend wide-ranging benefits to all categories of workers, including provident fund, Employees’ State Insurance Corporation (ESIC) coverage, insurance, and other safety measures.
A major highlight is the introduction of an Aadhaar-linked Universal Account Number (UAN) for gig and platform workers, aimed at ensuring portability of benefits across states and easy access to welfare schemes even when workers migrate.
The code also expands social security coverage for unorganised-sector workers and introduces digital compliance systems and facilitator-driven mechanisms to streamline implementation. A dedicated Social Security Fund will be set up to support welfare schemes, with revenues from compounded offences also directed into the fund.
Reacting to the announcement, an Uber spokesperson said, “Uber welcomes the government’s move to implement the new labour codes, including the Code on Social Security. Uber looks forward to working closely with the government to ensure the speedy and effective implementation of these reforms.”
Commenting on the need for updated frameworks, Minu Dwivedi, partner at JSA Advocates & Solicitors, said evolving work models had made such reforms essential. “There was an emerging need to address issues related to professional/freelance (gig) services, technology enablement, and new ways of working, which necessitated contemporary work arrangements to meet the current needs of corporates, public sector employers, individual workforce, consultants, and freelance/gig workers,” she said.