Who are gig workers and platform workers?

FAQ's

Who are gig workers and platform workers?

Gig workers perform work outside the traditional employer-employee relationship, often on short-term contracts or task basis. Platform workers specifically access work through online platforms or apps (like ride-sharing, food delivery, etc.). Both are now eligible for social security schemes under this Code for the first time.

How much must aggregators contribute for gig workers?

Aggregators must contribute 1-2% of their annual turnover OR 5% of the amount paid to gig/platform workers, whichever is LOWER. This creates a funding mechanism for gig worker welfare schemes.

How does the 50% wage rule affect social security?

If allowances and exclusions exceed 50% of total remuneration, the excess is added back to 'wages'. This affects EPF contributions (12%+12%), ESI contributions, and gratuity calculations, potentially increasing employer costs.

Is Aadhaar mandatory for social security benefits?

Yes, Aadhaar linkage became mandatory from 3 May 2021 for claiming any social security benefits. This enables digital verification and prevents duplicate claims.

How does gratuity work for fixed-term employees?

Fixed-term employees are entitled to gratuity on a pro-rata basis. The calculation is 15 days' wages for each completed year of service. Regular employees need 5 years continuous service except in cases of death or disability.

Can small establishments opt into EPF/ESIC voluntarily?

Yes, establishments below the mandatory threshold can opt into EPF/ESIC coverage. This requires agreement between the employer and majority of employees, with application to the Director-General of ESIC.

What is the BOCW exemption for residential construction?

Residential construction projects with cost below ₹50 lakh are exempt from the Building and Other Construction Workers (BOCW) provisions. Higher thresholds may be prescribed by the government.

How does employee compensation work for commuting accidents?

Under the new Code, travel to and from the place of work may be covered if it is deemed to be during the course of employment. This extends protection beyond just workplace accidents.

faq_s-2.txt · Last modified: 2026/03/07 14:15 by compliance_manager

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