What does the Social Security Code give gig workers in India?

LiveRec EditorialUpdated

India's Code on Social Security, 2020 defines gig workers, platform workers and aggregators for the first time, and lets the Central Government notify social security schemes for them. Aggregators are to contribute 1% to 2% of annual turnover, capped at 5% of what they pay to such workers, from a date the government must notify.

At a glance

  • Definitions: aggregator, gig worker, platform worker (section 2).
  • Schemes (section 114): life and disability cover, accident insurance, health and maternity benefits, old age protection, crèche.
  • Aggregator contribution: 1% to 2% of annual turnover, not more than 5% of amounts paid or payable to gig and platform workers.
  • Start date for the contribution: to be notified by the Central Government.

Definitions

  • Aggregator: a digital intermediary or marketplace connecting a buyer or user of a service with the seller or service provider.
  • Gig worker: a person who performs work or takes part in a work arrangement and earns from it outside a traditional employer-employee relationship.
  • Platform worker: a person engaged in platform work.

What the Code says schemes can cover

The Central Government may frame schemes on life and disability cover, accident insurance, health and maternity benefits, old age protection and crèche. Funding can come from the Central Government, state governments, aggregator contributions, CSR funds or other sources. A Social Security Fund has been proposed.

What is not decided by the Code alone

The contribution rate within the 1% to 2% range, the categories of aggregators and the start date are for the Central Government to notify. We do not state a start date, because we have not found one in a primary source. Check labour.gov.in. The Ministry's FAQ says the contribution is credited to the Social Security Fund and that it is notified by the Central Government, not states.

Registration

The e-Shram portal registers unorganised and gig and platform workers on a self-declaration basis, and the Ministry reports onboarding of major platform aggregators. The PIB says Aadhaar-linked Universal Account Numbers will make benefits portable across states.

Practical guidance

Workers: register on e-Shram if you do gig or platform work, and keep your mobile number linked. Platforms: watch for notified schemes, categories and rates. If you work through a staffing contract, check whether you are in fixed-term employment instead. See gig worker.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.