Key Provisions

First-time inclusion of gig economy workers in social security framework.

• Gig worker: person who performs work outside traditional employer-employee relationship
• Platform worker: a person engaged in or undertaking platform work
• Central Government may notify social security schemes for these workers
• Aggregators required to contribute to social security fund
• Examples: Ride-sharing, food delivery, logistics, e-marketplace, professional services

Mandatory contribution by digital platforms to gig worker welfare.

• Aggregators must contribute 1-2% of annual turnover, OR
• 5% of amount paid to gig/platform workers
• Whichever is LOWER applies
• Creates sustainable funding for gig worker benefits
• Applicable to ride-sharing, delivery, logistics, e-marketplace platforms etc. as listed under Schedule VII of the SS Code

Exclusions over 50% of remuneration added back to wages.

• Same 50% rule as Code on Wages
• Affects calculation of EPF contributions
• Affects calculation of ESI contributions
• Affects gratuity calculation
• May increase employer contribution obligations

Fixed-term workers will be eligible for gratuity on a pro-rata basis.

• Fixed-term employees are eligible for gratuity on a pro-rata basis
• Regular employees: 5 years minimum service required
• Exception: On death/disability, gratuity payable regardless of service period
• Working journalists: 3 years minimum retained
• Calculation: 15 days' wages per completed year
• Wider wage definition means higher gratuity payouts

Benefits for women employees during maternity.

• 26 weeks paid leave for first two children
• 12 weeks for third child onwards
• 12 weeks for adopting mother (child below 3 months)
• Nursing breaks until child is 15 months old
• Crèche facility in establishments with 50+ employees
• Medical bonus as prescribed

Special provisions for construction workers with exemption.

• Building and Other Construction Workers Welfare Boards
• Cess on construction cost (1-2%)
• Benefits include pension, medical expenses, education assistance
• Registration of building workers
• NEW: Residential construction below ₹50 lakh EXEMPT

Wide powers for inspection and compliance facilitation.

• Inspect establishments for compliance
• Facilitate employer understanding of requirements
• Power to compound offences
• Compounding available for: fines only OR imprisonment <1 year + fine
• Emphasis on compliance facilitation over penalization

Multiple funding sources for welfare schemes.

• Central Government contributions
• State Government contributions
• CSR (Corporate Social Responsibility) funds
• Beneficiary contributions
• Aggregator contributions (for gig workers)
• Construction cess for BOCW