Cover for gig workers: Amazon, others pledge Rs 500 crore to proposed social security fund – The Economic Times

Clipped from: https://economictimes.indiatimes.com/small-biz/sme-sector/cover-for-gig-workers-amazon-others-pledge-rs-500-crore-to-proposed-social-security-fund/articleshow/80743698.cmsSynopsis

The labour ministry has finalised the scheme for gig workers under the Employees’ State Insurance Corporation, which will be announced alongside the rollout of the Social Security Code.

NEW DELHI: More than a dozen companies including Amazon, Flipkart, Swiggy, Ola and Uber have committed about Rs 500 crore to the government’s proposed social security fund that will provide health insurance to one million gig workers, a top official told ET.

The labour ministry has finalised the scheme for gig workers under the Employees’ State Insurance Corporation, which will be announced alongside the rollout of the Social Security Code.

The initial commitments by the ecommerce platforms and ride aggregators are based on the options given to them under the Code, the official said.

“The above contribution is based on 1% of the revenue of the platforms,” the official said.

The Code had provided for contribution of 1-2% of revenue of the platform or 5% of the wages paid to the worker. However, it has been decided to peg it at 1% of revenue.

This will be topped up by a minuscule monthly contribution of up to Rs 100 from the gig worker. The government will, however, not make any monetary contribution. The platforms will be required to make an annual contribution by June 30 each year on a self-assessment basis.

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Companies will need to submit a form specifying the number of gig workers associated with them at the start of each financial year along with the preceding year’s annual turnover.

On their part, the gig workers will have to update particulars such as current address, job, period of engagement with the gig firm, skills, and mobile number on the portal specified by the government to avail of such benefits.

Gig workers covered under the scheme will be eligible for medical, maternity, disability and other benefits and would have access to ESIC hospitals. The labour ministry is ready with the rules under the four labour Codes, which will be notified soon, the official said.

Gig workers are a portable workforce that work with e-commerce platforms, taxi aggregators and food delivery firms, among others. However, the white-collar gig workforce, often referred to as freelance consultants, will not be part of the beneficiaries in the first year as the scheme.

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