Gig Workers’ Welfare: Swiggy, Urban Company, Uber Required to Contribute 1–2% of Annual Turnover

The Central Government has enforced a rule directing platforms like Swiggy, Uber, and Urban Company to contribute 1–2% of their annual turnover towards the welfare of gig and platform workers.  

This mandate forms part of the Code on Social Security, 2020, which came into effect from November 21, 2025, consolidating India's labour laws for a modern workforce model. 

Mandatory Contributions Towards Social Security Fund 

The revised Code on Social Security requires aggregators to contribute between 1% and 2% of their annual turnover, capped at 5% of the total payments made or payable to gig and platform workers. The fund is dedicated to financing central welfare schemes for these workers, providing benefits like healthcare, accident insurance, maternity support, and old-age assistance. 

This is the first legal recognition of terms such as 'gig worker', 'platform worker', and 'aggregator' under Indian law, shaping a formal welfare framework for millions employed outside traditional job structures. 

Universal Account Number for Workers 

Aadhaar-linked Universal Account Numbers (UANs) will be assigned to gig and platform workers. This will enable portability of benefits across states—particularly significant given high worker mobility across platforms and locations.  

Registration is compulsory, starting at age 16, and will require worker self-declaration and Aadhaar verification. Facilitation centres and helplines are expected to support this process. 

Read More: Swiggy Introduces New Fee Structure for Partner Restaurants! 

Role of the National Social Security Board 

The Board will oversee and advise on schemes and monitor fund utilisation at the state level. As part of new inclusivity, aggregator platform and gig worker representatives will be included in discussions concerning gig welfare. The Board will also evaluate the implementation of platform contributions and ensure proper utilisation of the funds. 

State-Level Initiatives and Alignment 

Karnataka enacted the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025 on September 12. It mandates a 1% to 5% commission on payments made to workers and establishes a state welfare board and fund.  

Telangana has also drafted a similar act projected to cover over 3,00,000 gig workers in sectors like logistics, delivery, domestic work, and transportation. 

Conclusion 

The latest implementation of India’s Labour Codes, including compulsory aggregator contribution, marks a key regulatory turn in acknowledging and supporting gig and platform workers. The move aims to build a fairer system by extending long-sought social security benefits to this expanding workforce. 

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