The social benefits of India's one million gig and platform workers will now be covered by online food delivery, e-commerce, and quick-commerce businesses like Amazon, Flipkart, Swiggy, Zomato, and Zepto, among others. The platforms and experts responded as follows.
India revealed new labor laws on November 21st, requiring online food delivery, e-commerce, and quick-commerce companies like Swiggy, Zomato, Amazon, Flipkart, and others to set aside up to 2% of their yearly sales for the welfare of gig and platform workers.The ministry of labor and employment declared that all employees will receive benefits under the new reforms, including social security, other insurance, coverage under the Employees' State Insurance Corporation, and retirement savings through provident funds.
At the moment, they have very little, if any, social security coverage.
The Union government unveiled four labor laws on Friday that will take effect right now. In addition to formally defining "gig workers," "platform workers," and "aggregators" for the first time, they seek to rationalize India's 29 current labor regulations.
Thanks to the growth of online marketplaces and commerce like Zomato, Swiggy, Uber, Amazon, and Flipkart, India's gig economy has exploded during the last ten years. Usually, third-party staffing companies are used to hire these temporary employees. According to a Press Information Bureau report dated August 30, the number of gig workers in the nation is expected to increase from 10 million in 2024–2025 to 23.5 million by 2029–2030.
The Union government unveiled four labor laws on Friday that will take effect right now. In addition to formally defining "gig workers," "platform workers," and "aggregators" for the first time, they seek to rationalize India's 29 current labor regulations.
Thanks to the growth of online marketplaces and commerce like Zomato, Swiggy, Uber, Amazon, and Flipkart, India's gig economy has exploded during the last ten years. Usually, third-party staffing companies are used to hire these temporary employees. According to a Press Information Bureau report dated August 30, the number of gig workers in the nation is expected to increase from 10 million in 2024–2025 to 23.5 million by 2029–2030.
What are the firms going to do?
Aggregators will now have to contribute 1-2% of their yearly turnover—up to 5% of the total amount paid or receivable to gig and platform workers—to these benefits as a result of the government's increased liability.
It further stated that social benefits and full portability will be made easily accessible to gig and platform workers throughout India, regardless of whether they relocate to another state, through the implementation of an Aadhaar-linked Universal Account Number (UAN).
Aggregators will now have to contribute 1-2% of their yearly turnover—up to 5% of the total amount paid or receivable to gig and platform workers—to these benefits as a result of the government's increased liability.
It further stated that social benefits and full portability will be made easily accessible to gig and platform workers throughout India, regardless of whether they relocate to another state, through the implementation of an Aadhaar-linked Universal Account Number (UAN).
"To ensure a smooth, risk-free transition to the new regime, employers should proactively reassess workforce structures, update employment documentation, and realign compliance systems," stated Pooja Ramchandani, partner at the legal firm Shardul Amarchand Mangaldas & Co.
Additionally, according to Sonal Arora, country manager at HR services platform GI Group Holding, retail companies with a national presence—particularly those hiring gig workers for delivery and warehouse work—will need to monitor state-level differences in pay, benefits, and other legal requirements.
Additionally, according to Sonal Arora, country manager at HR services platform GI Group Holding, retail companies with a national presence—particularly those hiring gig workers for delivery and warehouse work—will need to monitor state-level differences in pay, benefits, and other legal requirements.
In order to automatically align salary, benefits, and statutory requirements with the appropriate state jurisdiction, a practical strategy is required to maintain a dynamic, state-by-state compliance tracker and incorporate geotagged employee data. In summary, implementation is still state-driven even though the codes streamline the overall structure. To maintain complete compliance across locations, organizations will require flexible systems and procedures, Arora continued.
Social security benefits and payouts for these people are not standardized and frequently rely on the type of occupations they choose. Additionally, gig workers usually work long hours without set schedules. Demand, time of day, and holiday seasons can all affect payouts. In addition to dealing with inclement weather and traffic, the majority of gig workers frequently require their own cars.
Social security benefits and payouts for these people are not standardized and frequently rely on the type of occupations they choose. Additionally, gig workers usually work long hours without set schedules. Demand, time of day, and holiday seasons can all affect payouts. In addition to dealing with inclement weather and traffic, the majority of gig workers frequently require their own cars.
"Uber welcomes the government's move to implement the new labor codes, including the Code on Social Security," an Uber representative stated. Uber anticipates collaborating closely with the government to guarantee the prompt and efficient execution of these reforms.
"The new labor codes provide a clearer and more predictable framework for businesses and workers," stated Rajneesh Kumar, chief corporate relations officer, Flipkart Group. We are examining the notification and will continue to adhere to all regulations.
According to an Amazon representative, the Code on Social Security is in line with the company's values of ensuring the safety, security, and welfare of its workers. "While applauding the government's intention to carry out labor reforms,
"The new labor codes provide a clearer and more predictable framework for businesses and workers," stated Rajneesh Kumar, chief corporate relations officer, Flipkart Group. We are examining the notification and will continue to adhere to all regulations.
According to an Amazon representative, the Code on Social Security is in line with the company's values of ensuring the safety, security, and welfare of its workers. "While applauding the government's intention to carry out labor reforms,
Eternal, the parent company of Zomato and Blinkit, stated in an official statement that "we are deeply committed to the well-being of gig workers and already provide a range of comprehensive insurance and welfare benefits, free of cost." We applaud this news because we are dedicated to promoting policies that further enhance gig workers' results.
Additionally, Mint has contacted Swiggy, Zepto, Delhivery, Shiprocket, Porter, Urban Company, Myntra, and Meesho; if and when they reply, the story will be updated.
Additionally, Mint has contacted Swiggy, Zepto, Delhivery, Shiprocket, Porter, Urban Company, Myntra, and Meesho; if and when they reply, the story will be updated.
The new Labor Codes' objective
The government hopes to improve worker welfare and bring India's labor laws into line with those of other nations by modernizing them through these codes. According to the labor ministry, the 29 labor regulations they replaced were based on antiquated, complicated, and disjointed rules that were written between the 1930s and the 1950s.
According to Ramchandani, "the reforms will significantly impact sectors like IT/ITES, manufacturing, MSMEs, gig and platform work, textiles, logistics, and hazardous industries, each facing new obligations around wages, social security, safety standards, and women's night-shift participation."
The government hopes to improve worker welfare and bring India's labor laws into line with those of other nations by modernizing them through these codes. According to the labor ministry, the 29 labor regulations they replaced were based on antiquated, complicated, and disjointed rules that were written between the 1930s and the 1950s.
According to Ramchandani, "the reforms will significantly impact sectors like IT/ITES, manufacturing, MSMEs, gig and platform work, textiles, logistics, and hazardous industries, each facing new obligations around wages, social security, safety standards, and women's night-shift participation."
The decision was a huge victory for the gig economy, including aggregators, according to Balasubramanian A, senior vice president of TeamLease Services, a recruiting and HR services provider, since it provided them with a structure to adhere to. Since gig workers may work on multiple platforms, many insurance providers are reluctant or unwilling to provide such insurance plans. That is a significant obstacle, but if the government passes legislation, it will need to be completed in some way.
"The social security code clearly states that gig and platform workers also need to be brought under the purview of social security," he continued. They operate mostly in e-commerce, quick-commerce, logistics, etc., and there are more than one crore of them in India.
"The social security code clearly states that gig and platform workers also need to be brought under the purview of social security," he continued. They operate mostly in e-commerce, quick-commerce, logistics, etc., and there are more than one crore of them in India.
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