Govt Mandates Zomato, Swiggy, Zepto to Fund Gig Worker Welfare With 2% Turnover Contribution

The Indian government has announced a major policy shift aimed at strengthening social security for gig and platform workers. Under the newly implemented Labour Codes, online aggregators will now be required to contribute up to 2% of their annual turnover—capped at 5% of the payments made to workers—towards a dedicated welfare fund. The move marks the first time formal definitions for aggregators, gig workers, and platform workers have been introduced under Indian labour law.

Aggregator Contribution for Gig Worker Welfare

With the rollout of the Code on Social Security (2020), companies operating digital delivery and service platforms—such as Zomato, Swiggy, Uber, and Zepto—must allocate a fixed contribution to support worker benefits.

The contribution will go into a centralised Social Security Fund, which will be used to finance welfare schemes like insurance, provident fund support, and emergency assistance for gig workers.

Universal Account Number for Gig and Platform Workers

To enhance accessibility and portability of benefits, the Ministry of Labour and Employment has announced that gig and platform workers will receive an Aadhaar-linked Universal Account Number (UAN).

The UAN will:

• Make social welfare schemes accessible across states
• Ensure portability for workers who frequently migrate
• Facilitate easier verification and benefit disbursement

This digital approach is expected to streamline social security delivery and reduce compliance complexities.

Expanded Coverage Under Social Security Code

The revised Labour Codes extend key benefits to unorganised workers, gig workers, and platform workers, including:

• Health and life insurance
• Maternity benefits
• Provident fund coverage
• Employee State Insurance (ESI) access where applicable
• Digital compliance systems for faster processing

A portion of the funds generated from the compounding of offences under labour regulations will also be directed to the Social Security Fund.

Industry Reaction: Uber Welcomes the Move

Reacting to the announcement, an Uber spokesperson expressed support for the government’s initiative, saying the company looks forward to collaborating with authorities to ensure smooth implementation of the new codes. Industry experts believe this reform could bring much-needed stability to India’s fast-growing gig economy.

The introduction of mandatory contributions from online aggregators marks a significant step toward formalising the gig economy in India. With digital systems, portable benefits, and a dedicated welfare fund, the government aims to provide long-term security to millions of workers. As implementation progresses, the focus will shift to ensuring seamless adoption by platforms and accessibility for workers across the country.

FAQ: New Labour Codes and Gig Worker Welfare

1. What is the new contribution rule for online aggregators?

Online aggregators must contribute up to 2% of their annual turnover, capped at 5% of the payments made to gig and platform workers, toward their social security.

2. Which companies will be affected by this rule?

Companies such as Zomato, Swiggy, Uber, Zepto, and other delivery or service-based digital platforms operating in India will come under this mandate.

3. What is the purpose of the Social Security Fund?

The fund will finance welfare schemes for gig and platform workers, including insurance, emergency support, and long-term social security benefits.

4. What is the UAN for gig workers?

The Universal Account Number, linked to Aadhaar, will allow workers to access benefits across states and platforms, ensuring portability.

5. Do these codes cover unorganised sector workers as well?

Yes. The Code on Social Security extends coverage to unorganised workers, gig workers, and platform workers, providing health, maternity, insurance, and provident fund benefits.