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Social security code introduced in Lok Sabha; includes gig workers benefits

Swiggy Food Delivery

Union Labour Minister Santosh Kumar Gangwar today introduced Code on Social Security, 2020 — which will provide social security benefits to gig workers — in Lok Sabha, along with two other labour codes amidst opposition from Congress MPs, including Shashi Tharoor and Manish Tewari. According to a Business Standard report, aggregators or gig economy companies will have to contribute 1-2% of their annual turnover for social security of gig workers. The contribution “should not be more than 5% of the amount paid to gig workers", per the report. So far, gig workers have not fallen under any legislation and are not entitled to social security schemes. Gig companies, such as Zomato, Swiggy, Ola, and others, consider such workers as independent contractors, and not employees, and hence are left out of any social security benefits. The code was first introduced in…

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