Amazon, Flipkart, Swiggy, Zomoto to contribute to fund for gig workers' welfare, Pg15

Key Highlights:

• The Code on Social Security, 2020 brings gig and platform workers under a formal welfare framework for the first time, enabling their registration on a national database.
• The code opens access to schemes covering health, disability, accident insurance, and old-age support for millions of gig workers.
• A Social Security Fund will be created with contributions from central and state governments, CSR funds, and fines.
• Aggregators like Amazon, Flipkart, Swiggy, and Zomato will contribute 1-2% of their annual turnover towards the fund, capped at 5% of payouts to workers.
• The National Social Security Board will advise the Centre on framing and monitoring schemes for unorganised, gig, and platform workers.
• Accidents during commute between home and workplace will be treated as employment-related accidents.
• The gig sector is expected to employ 2.35 crore by 2029-30.

Detailed Insights:

• The Code on Social Security, 2020 defines gig workers, platform workers, and aggregators, formalizing their status and rights within the labor framework.
• The Social Security Fund will finance crucial benefits like life insurance, health and maternity benefits, and provident fund schemes, enhancing the social safety net for gig workers.
• Gig workers gain rights to mandatory appointment letters, accident insurance, and disability protection, addressing their previous vulnerabilities as independent contractors.
• The reform aims to address financial invisibility by extending portable provident fund contributions, pension eligibility, and access to affordable credit through formal records.
• Platforms must register all gig and platform workers using an Aadhaar-linked Universal Account Number, ensuring seamless benefit portability across states.
• The absence of prior legislation left gig and platform workers without social security benefits, despite long hours and challenging conditions.
• The code addresses the need for comprehensive social security measures to support the growing gig economy and protect the rights and welfare of its workers.

Key Concepts Involved:

• Gig Worker: A person performing work outside the traditional employer-employee relationship.
• Platform Worker: A subset of gig workers who use online platforms to connect with clients or customers.
• Aggregator: A digital intermediary connecting buyers/users with sellers/service providers.
• Social Security Fund: A fund created to finance social security and welfare schemes for gig and platform workers.