By Kavita Mistry 
Online food delivery, e-commerce, and quick-commerce companies like Swiggy, Zomato, Amazon, and Flipkart will now be required to allocate up to 2% of their annual turnover for the welfare of gig and platform workers.
These changes are part of India’s newly introduced labour codes announced on 21 November.
New Labour Codes Require Major Platforms to Allocate 2% Revenue for Gig Worker Welfare
The Ministry of Labour and Employment stated that under the new rules, all workers will now receive benefits such as provident fund, Employees’ State Insurance Corporation coverage, insurance, and broader social security support.
Currently, most gig and platform workers receive little to no social security benefits.
The Union government announced four labour codes that immediately come into effect, replacing and rationalising 29 existing labour laws.
For the first time, terms like “gig workers,” “platform workers,” and “aggregators” have been officially defined in Indian labour policy.
India’s gig economy has expanded rapidly due to the rise of online commerce platforms like Zomato, Swiggy, Uber, Amazon, and Flipkart.
Most gig workers are hired through third-party staffing firms.
India’s Gig Workforce Expected to More Than Double by 2030
India’s gig workforce is projected to grow from 10 million in 2024-25 to 23.5 million by 2029-30, according to a government note dated 30 August.
Aggregator companies will now be legally required to contribute 1–2% of their annual turnover, capped at 5% of payouts made to gig workers, toward their welfare benefits.
An Aadhaar-linked Universal Account Number (UAN) will be introduced to make social security benefits portable for gig and platform workers across states.
Lawyer Pooja Ramchandani said, “For employers, this is the moment to proactively reassess workforce structures, update employment documentation, and realign compliance systems to ensure a smooth, risk-free transition to the new regime.”
Sonal Arora from GI Group Holding noted that companies operating nationwide will need to track state-level differences in salary rules, benefits, and compliance requirements, especially those employing gig workers in delivery or warehousing.
Arora added that organisations will need adaptable systems and processes and said, “A practical approach is needed to maintain a dynamic, state-by-state compliance tracker and integrate geo-tagged employee data so that salaries, benefits and statutory obligations automatically align with the relevant state jurisdiction.”
The article notes that gig worker payouts are inconsistent and depend on job type, timing, demand, festivals, weather conditions, and travel conditions.
Many gig workers work long hours, face challenging weather and traffic, and often must pay for their own vehicles and fuel.
An Uber spokesperson said, “Uber welcomes the government’s move to implement the new labour codes, including the Code on Social Security… to ensure the speedy and effective implementation of these reforms.”
Flipkart’s corporate affairs officer Rajneesh Kumar said, “The new labour codes provide a clearer and more predictable framework for businesses and workers… we will remain fully compliant with all requirements.”
An Amazon spokesperson said the Code on Social Security supports its existing priorities and added, “we are evaluating the impact on the industry and the changes which would have to be ushered in.”
Zomato and Blinkit’s parent company Eternal stated, “we are deeply committed to the well-being of gig workers… and hence welcome this announcement.”
The article notes that comments from Swiggy, Zepto, Delhivery, Shiprocket, Porter, Urban Company, Myntra, and Meesho are still awaited and will be added once received.