New Delhi: Gig and platform companies, like taxi aggregators and food delivery firms, will contribute between 1% and 2% of their annual turnover or 5% of the total salary paid to their gig workers on account of social security benefits.
The companies will have to submit the corpus to a social security fund that the union government is establishing under the new labour codes.
As per Code on Social Security, the union government shall “establish a Social Security Fund for social security and welfare of the unorganised workers, gig workers and platform workers,” the union labour ministry has informed Parliament.
“The Code…envisages a contribution between one to two percent of annual turnover of an aggregator, subject to maximum five percent of the amount paid or payable by an aggregator to gig and platform workers. This shall be credited to the Social Security Fund,” labour minister Santosh Gangwar has told Parliament in a written reply.
The minister has also informed that the Standing Committee on Labour had recommended that the provisions for framing of schemes and constitution of social security fund for gig and platform workers and unorganized workers should be aligned and mentioned in the labour codes.
The union labour ministry is finalizing rules of labour codes, and once the codes are implemented such provisions will come into effect. India has consolidated 29 labour laws into four broad codes on wages, social security, occupational health, and industrial relations.
Authorities and experts have argued for years that with the growth of platform economy and opportunity at aggregating firms , there is a need for offering social security benefits to such workers, who generally, are neither considered part of formal sector nor part of the informal sector.