New Rules Mandate Social Security Contributions for Gig Workers in India
Aggregators to be charged interest at 12% per annum if they fail to contribute toward social security of their gig workers
The Economic Times
Image: The Economic Times
India's Ministry of Labour and Employment has introduced new regulations mandating aggregators to contribute to the social security of gig workers. Failure to comply will result in a 12% annual interest charge. Aggregators must register gig workers on a government portal within 45 days to ensure their eligibility for benefits.
- 01Aggregators face a 12% annual interest charge for non-compliance with social security contributions.
- 02All gig workers must be registered on a government portal within 45 days.
- 03Gig workers must be at least 16 years old and have worked a minimum number of days to qualify for benefits.
- 04An authority will be established to manage contributions to the social security fund.
- 05Workers become ineligible for benefits upon reaching 60 years of age or ceasing gig work.
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The Ministry of Labour and Employment in India has announced new regulations under the Labour Code on Social Security aimed at ensuring gig workers receive social security benefits. Aggregators will incur a 12% annual interest charge if they fail to contribute to these benefits. They are required to upload details of all gig workers to a central government portal within 45 days to facilitate coverage. The eligibility criteria state that gig workers must be at least 16 years old and have worked for a minimum of 90 days with an aggregator, or 120 days across multiple aggregators in the last financial year. Additionally, an authority will be established to oversee the contributions to the social security fund, which will provide benefits to gig workers. Workers will lose eligibility for benefits upon reaching 60 years of age or if they stop working as gig workers.
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This regulation aims to ensure that gig workers receive necessary social security benefits, which could improve their financial stability and access to healthcare.
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