Up to 2% of Turnover: Social Security for Gig Workers in India

If you deliver food, drive a cab or fix ACs through an app, a law says the company may have to set aside up to 2% of its turnover for your welfare. On Friday, the Centre named the board that will decide how that money turns into real benefits.

This is the next step for social security for gig workers in India. It is not a cash scheme yet, and no new benefit has been announced. But it decides who sits at the table when pension, insurance and health cover get designed.

Quick answer

• The Ministry of Labour has notified a National Social Security Board for unorganised, gig and platform workers.
• Under the Code on Social Security, aggregators must pay 1-2% of annual turnover into a fund, capped at 5% of what they pay workers.
• The rate and start date for those payments still have to be notified, and no new benefits are official yet.
• What you can do now: register free on e-Shram with your Aadhaar and an Aadhaar-linked mobile number.

What is the National Social Security Board for gig workers?

It is a government advisory body that recommends and monitors welfare schemes for gig, platform and other unorganised workers.

The Labour Ministry said the board will "design, monitor, and recommend targeted welfare schemes to bridge the social security gap" for gig and platform workers (PIB).

The Union Labour Minister chairs it. It has to meet at least three times a year.

Its listed jobs are plain:

1. Recommend schemes for different groups of unorganised, gig and platform workers.
2. Advise the Centre on running the Code on Social Security.
3. Monitor central welfare schemes for these workers.
4. Review record keeping done by states.
5. Review spending from the fund.

The board has a tenure of three years, with the labour secretary as vice-chairperson (Business Standard).

Who sits on the board, and why does it matter for riders?

The gig workers' board mixes the companies that pay you, unions that speak for you, and officials who run the money.

Five aggregators have seats: Eternal Group, Swiggy, Zepto, Urban Company and Rapido (Business Standard).

On the worker side, the Indian Federation of App-Based Transport Workers (IFAT) gets two members. Bharatiya Mazdoor Sangh, the National Front of Indian Trade Unions and the Trade Union Coordination Centre get one each.

The heads of ESIC and EPFO are members too. So are five states: Uttar Pradesh, Maharashtra, Andhra Pradesh, Gujarat and West Bengal.

Why care? Your future accident cover, health benefits or pension will likely start as a recommendation from this room. If your city's union is not represented, it helps to know which ones are.

How much will Swiggy, Zomato and others pay into the fund?

The law sets a range of 1-2% of an aggregator's annual turnover, but the exact rate has not been notified yet.

Under the Code, aggregators contribute 1-2% of annual turnover, capped at 5% of the amount paid or payable to gig and platform workers (PIB factsheet).

The Centre still has to notify the actual rate and the date the payments begin, Business Standard reported. Mint added that "no official notification on the benefits has been issued yet" (Mint).

The pool of people this could cover is growing fast.

Gig workforce of 10 million in 2024-25 projected to reach 23.5 million by 2029-30

Source: Mint, citing a PIB note

India's gig workforce is projected to grow from 10 million in 2024-25 to 23.5 million by 2029-30, according to a PIB note cited by Mint (Mint).

What most guides miss: the 5% cap is measured against what a platform pays its workers, not its whole revenue. So a company that pays riders less also hits a lower ceiling on what it owes the fund. For workers, the payout rates and the welfare money are linked more closely than the headlines suggest.

What benefits could gig workers get?

The Code lists the areas, but the actual schemes, amounts and eligibility rules still have to be framed and notified.

Section 114 of the Code covers life and disability cover, accident insurance, health and maternity benefits, old-age protection and creche facilities (Business Standard).

The government also says the benefits will be portable. Each worker gets an Aadhaar-linked ID through e-Shram, so benefits should stay with you if you switch from one app to another, or work on two at once (PIB factsheet).

That matters for side hustlers. Many people deliver on one app in the evening and drive on another at weekends. Under the old system, any benefit tied to one platform was lost when you left.

Be careful with posts on social media claiming a fixed government pension amount for delivery partners under this board. Nothing like that has been notified. If someone asks for a fee to "activate" a gig worker pension, treat it as a scam.

How to register on e-Shram as a gig worker

Registration on e-Shram is free, needs only Aadhaar and a mobile number, and can be done online or at a Common Service Centre.

Any unorganised worker aged 16 years and above can register, as long as they are not an income tax payer or an EPFO or ESIC member, says the PIB explainer (PIB).

The steps are simple:

1. Go to the e-Shram self-registration page, or visit your nearest Common Service Centre or State Seva Kendra.
2. Keep your Aadhaar number and an Aadhaar-linked mobile number ready.
3. Complete Aadhaar eKYC and fill in your work details.
4. Note down your Universal Account Number.

You do not pay anyone. PIB says workers are not required to pay any fee to any registering agency. The portal already has over 31.89 crore registrations.

If your side hustle is your main income, register now. When schemes are notified, the database is what the government will use to find you.

FAQs

Has the new board announced a pension for Swiggy and Zomato delivery partners?

Not yet. The board can recommend pension and insurance schemes under the Code, but no official notification on these benefits has been issued.

How much do aggregators contribute for gig workers?

The Code sets 1-2% of annual turnover, capped at 5% of what they pay workers. The exact rate and start date are still to be notified.

Do I lose benefits if I switch delivery apps?

The government says benefits will be portable through an Aadhaar-linked ID from e-Shram, so they should move with you across platforms.

Is e-Shram registration free?

Yes. Registration is free, and you should not pay any agent or centre for it.

Do you work on a delivery or ride app on the side? Tell us in the comments which benefit you would want first.

Expert review: pending.

Results vary; nothing here is a promise of income. This is general information on labour rules, not legal advice.

Related reading

• ₹22,500 a Month: Gig Workers Salary Per Month, and the Catch
• ₹99 Is Enough to Start: Gig Workers Are Getting NPS Pensions
• ₹508 for 19 Orders: Is Blinkit a Good Side Hustle Earning App?

Sources

• PIB: Government notifies National Social Security Board for Unorganised Workers and Gig & Platform Workers
• Business Standard: Centre constitutes social security board for gig, unorganised workers
• Mint: Swiggy, Zomato, other gig workers to get new social security board
• Mint: Swiggy, Zomato, Blinkit, others to contribute up to 2% of annual turnover
• PIB factsheet: Social security for gig and platform workers
• PIB: 5 years of e-Shram portal