Gig firms to contribute 1-2% of turnover for social security of workers

Workers will be entitled to life and disability cover, accident insurance, health and maternity according to proposal to be introduced in Lok Sabha today.

Gig companies will soon have to allot one-two per cent of their annual turnover for social security funds of their workers, according to a new labour law scheduled to be tabled in the Parliament on Saturday.

This is the first time that “aggregators”—ride-sharing services, food and grocery delivery, logistic services, e-market places among them”—will be asked to contribute for the social security of gig economy workers.

The Code on Social Security Bill, 2020 however, puts a cap on the total contributions companies have to make. The contribution “should not be more than 5 per cent of the amount paid to