Platforms Like Ola & Swiggy to Deposit 5% Wage in Social Security Fund Under Draft Rules
November 19, 2020
On Sunday, the labor ministry issued the draft rules for implementing provisions in the Code on Social security 2020, which proposes a social security fund for unorganized and gig workers. Under the draft rules, gig workers can register themselves through Aadhar. This would help them to avail the benefits from the Social Security scheme.
As per the rules set by the Labor ministry, aggregators like Ola, Swiggy, Uber and UrbanClap may have to deposit either 1–2% of their annual turnover or 5% of the payment to workers, whichever is lower to provide social security benefits to such staff.
At present, platform or gig workers are not eligible for any social security benefits. Most of the unorganized sector workers are not even assured minimum wages. With the help of the social security scheme, benefits such as disability coverage, maternity benefits, accident and health insurance can be provided to them.
As per the statement by ministry on Sunday, “provisions have also been made regarding gratuity to an employee who is on fixed term employment.
Passed by the parliament back in September, the code aims to provide security to over 450 million workers, and is expected to roll out by next financial year. Contributors from state and central government will fund the scheme.