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Code on Social Security, 2020, lays down gig and platform worker benefits

Update: The Code on Social Security has been passed in both houses of Parliament. The Lok Sabha first passed it on September 23, followed by <a href="passage in the Rajya Sabha on September 24. In a first, the central government has recognised the gig economy — gig workers, platform workers, and aggregators — under a wide-ranging proposed labour law that it introduced in Lok Sabha on Saturday. The Code on Social Security, 2020, empowers the central government to formulate social security schemes for gig workers and platform workers around life and disability cover, accident insurance, health and maternity benefits, old age protection, creche, and other benefits the government may determine as necessary. So far, gig workers have not fallen under any legislation and are not entitled to social security schemes. Companies that rely on gig workers, such as Zomato, Swiggy, Ola, and others, consider such workers as independent contractors, and not employees, and hence leave them out of any social security benefits. The new code said that social security schemes can be can be fully or partially funded by the government, by aggregators, in part by the state government, or funded by CSR, or “any other source”. Aggregators will have to contribute between 1-2% of their annual turnover, excluding taxes or cess payable to the central government, as contribution to social security funds for gig and platform workers. The aggregator’s contribution will not exceed 5% of the amount payable to gig workers and platform workers. The bill was introduced in…

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