Social Security Fund For Platform Workers: Aggregators' Responsibility

Khurana and Khurana


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Over 77 lakh people are engaged in gig and platform work. Were you aware of that? According to the statistical data of 2020-21 estimated in the report titled "India's Booming Gig and Platform Economy" launched by NITI Aayog...
India Employment and HR
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Over 77 lakh people are engaged in gig and platform work. Were you aware of that? According to the statistical data of 2020-21 estimated in the report titled "India's Booming Gig and Platform Economy" launched by NITI Aayog, which provides a scientific approach, calculating the sector's present size and employment-generating potential. Thus, became a valuable resource for understanding the potential sector. Also, helps to analysis and research gig and platform work." The report has also analysed the expansion of gig and platform workers to 2.35 crore by 2029-2030. Trending in all sectors, mainly concentrating on low skilled and high skilled workers and declining low skilled workers. Workers like delivery drivers, freelancers, and other professionals, are becoming the part of the rapid growth rate gig economy. Providing millions of peoples with the chance to earn money, freedom and flexibility. A part from these benefits there are 'N number of huddles', let's consider work for 10-12 hours a day despite of drastic weather conditions, driving a car and delivering food which is really a tough job, especially working for an online platform or aggregators that pays you according to how many orders delivered or trips driven by the driver. Lacking social protection, regular income and the permanent job. There is always a chance of accidents or experiencing violence. Imagine yourself a worker amongst the 77 lakhs platform and gig workers that work for online platforms or aggregators that link them to clients or service providers.

However, what if there was a means of giving these workers access to social security benefits like health insurance, maternity benefits, provident fund, gratuity, etc.? What if, in accordance with specific requirements, the aggregators—Uber, Ola, Swiggy, and so on—had to make contributions to the social security system on behalf of these workers? What impact would that have on the aggregators' role and responsibilities as well as the empowerment and well-being of these workers? One of the four new labour codes that the Indian Parliament has passed, "the Code on Social Security, 2020," aims to reduce the gap by providing a platform and enabling workers to access social security benefits. In accordance with certain requirements, the Code also holds aggregators like Uber, Ola, Swiggy, and others accountable for making contributions to the social security fund on behalf of these workers. This is an important and forward-thinking move in guaranteeing the welfare and empowerment of platform workers and gig workers, as well as acknowledging the role and duty of aggregators in the gig economy.


Those who work for internet platforms or aggregators that link them with clients or service providers are known as gig workers or platform workers. They are not self-employed in the traditional sense, nor do they work for the platforms or aggregators. Instead, then being compensated for the number of hours they labour or the results they produce, they are paid for the activities or services they do. They have no job security, no predetermined income, and no social security coverage. They are a part of the quickly expanding gig economy, which provides millions of people with chances for money, freedom, and flexibility. Platform workers and gig workers work in a variety of industries and professions, including delivery, e-commerce, freelance work, and transportation.


  • Drivers recruited by ride-hailing services like Uber, Ola, etc.
  • Delivery drivers engaged in food delivery services like Swiggy, Zomato, etc.
  • Independent contractors who need the workforce for internet markets like Fiverr, Upwork, etc.
  • merchants on the internet who work for sites like the Amazon, Flipkart, etc.


  • Poor and erratic pay: There is no minimum salary, no overtime compensation, no bonus, and no incentive for gig and platform workers. The demand and supply for the jobs or services they do, the commission or fee levied by the platforms or aggregators, and the competition from other workers all affect how much money they make. It could be hard for them to plan ahead and save money because of how their income fluctuates from day to day, week to week, or month to month.
  • Exposure to diseases, accidents, or violence: While carrying out their jobs or providing their services, gig workers and platform workers are subject to a variety of dangers, including diseases, accidents, or violence. When driving or delivering, they can run into traffic infractions, car malfunctions, thefts, or accidents.
  • Lack of access to social security benefits: Health insurance, maternity benefits, provident fund, gratuity, and other benefits that are vital to the well-being of gig and platform workers are not available to them.
  • The Absence of formal contracts, collective bargaining power, and legal rights: Gig workers and platform workers are not covered by official contracts, nor do they have any legal protections. The platforms, aggregators, labour laws, and courts do not acknowledge them as workers or employees.


National Social Security is a Board which specifically performs for the benefit of platform workers, gig workers, state and federal government representatives, specialists, and aggregators. The Board will also be responsible for developing and managing initiatives and welfare programmes for all the above stated hires.

  • Health and maternity benefits: it describes about a scheme which provides gig workers and platform workers with medical care like sick leave, maternity benefits, benefits for disability, and child support benefits. The federal government, state governments, and aggregators will all contributes for the initiative.
  • Provident fund and gratuity: With the goal to provide gig workers and platform workers with a provident fund and a gift, the laws offer a specified contribution plan in which aggregators and workers will each contribute a predetermined percentage of the workers' salary or income. The administration of the plan will be supervised by either the State Board of Trustees or the Central Board of Trustees, as applicable.
  • Additionally, it grants the Central Government the power to announce fresh welfare programmes or benefits for gig workers and platform workers, including housing, education, old age security, life insurance, and disability insurance.


  • Up to a maximum of five percent of the entire amount that the aggregator is obligated to pay platform workers and gig workers, the aggregator is expected to donate one to two percent of its annual turnover.
  • In addition, the aggregator contributes in addition to the Central Government.
  • The Central Government reserves the right to publish different rates of contribution based on the number of employees, industry, or kind of workers at each category of aggregator.
  • The list of gig workers and platform workers compiled by the aggregators must be sent to the Central Government or its designated authorities.
  • The aggregators are required to follow any further rules or directives that the Central Government may impose.


An important and expanding portion of the workforce in the digital economy is made up of gig and platform workers in India, and the new Labour Code is a laudable step towards giving them social protection. The Code guarantees that aggregators bear a portion of the cost of delivering social security benefits to workers in conjunction with the government, acknowledging their role and responsibilities in the gig economy. The Government, the Aggregators, and the Workers must work together in a transparent manner to address and resolve the obstacles and constraints that the Code faces in its implementation and enforcement.

I've talked about aggregators' contributions to the social security fund for platform and gig workers in India in my blog article, as well as how they affect the labour market and gig economy. My main point is that while the new Labour Code is a positive step in the right direction towards offering social security to gig workers and platform workers in India. These issues should be addressed and resolved in a transparent and cooperative manner by the government, aggregators, and workers.


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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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