Rules to change for Ola, Uber, and delivery personnel; they will get the benefit of a social security fund..

Discussions are ongoing in India regarding the rules for social security contributions for gig workers and those employed by online platforms. The government is deliberating whether to levy contributions from aggregator companies based on their annual turnover or based on the payments made to workers. Each method could impact businesses differently; specifically, there are concerns that a payment-based system might place a heavier burden on ride-hailing services such as cabs, autos, and bike taxis.

**Two Methods Under Consideration**
According to analysts and industry sources, the Ministry of Labour and Employment is considering adopting a system based on either "per-transaction" metrics or the total payments made to workers to determine social security contributions. The alternative option is to base contributions on the companies' annual turnover. Analysts note that a model linked to transactions or worker payments could impose a greater financial burden on businesses characterized by high transaction volumes but low value per transaction. Given the varying business models of different platforms, the impact of either system could differ significantly.

**What is the Social Security Law?**
Under the Code on Social Security, 2020, aggregator companies are mandated to contribute to a social security fund for gig and platform workers. According to the rules, a gig worker becomes eligible for benefits under this scheme after working for 90 days with a single aggregator or a total of 120 days across multiple aggregator companies within a financial year. Aggregator companies are required to calculate and deposit their annual contributions. Deliberations are currently underway regarding the technical mechanism for calculating these contributions.

**Contribution: 1–2% of Turnover or Up to 5% of Payments**
Under Section 114(4) of the Code, aggregators are required to contribute between 1% and 2% of their annual turnover. However, this contribution amount cannot exceed 5% of the total payments made to gig and platform workers. The ministry is also considering an alternative formula based on direct payments made to workers, under which a contribution of up to 5% of the payment could be levied. Analysts believe that such a payment-based system could place a significant burden on high-transaction businesses, such as ride-hailing services involving cabs, autos, and bikes.

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