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

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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 2019 in the lower house, and was referred to the Standing Committee on Labour, which presented its report in end July. Among the committee's recommendations was that the code should specify who will fund social security benefits for gig workers. The Labour ministry's thinking was that gig economy companies should contribute to this even though they have an atypical relation with gig workers, as compared to common employee-employer relations. The other two bills introduced are the Occupational Safety, Health, and Working Conditions Code, 2020, and Industrial Relations Code, 2020. The three bills were introduced after their previous (2019) versions were withdrawn. Substantive changes were made to the 2019 social security…

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