Amazon, Flipkart, Swiggy, Uber, others pledge Rs 500 crore to proposed social security fund

Around a dozen companies, including the likes of Amazon, Flipkart, Swiggy, Uber and Ola, have committed around Rs 500 crore to the government's proposed social security fund. Government proposed to provide health insurance to 1 million gig workers through the fund. Along with the roll out of the Social Security code, the labour ministry will also launch some scheme under the Employees' State Insurance Corporation.

Gig workers who are covered under these benefits would be able to access medical, maternity, disability and other under benefits. They would have access to ESIC hospitals. The rules under the Social Security Code would be notified soon.

The initial commitments by the ecommerce platforms are based on the options offered to them under the Social Security Code, as mentioned in a report in The Economic Times. The contribution is based on 1 per cent of the revenue of the platforms, the daily stated.

The government had given options of contribution of 1-2 per cent of the revenue of the platform or 5 per cent of the wages paid to the worker. Eventually it was decided that the contribution would be pegged at 1 per cent of the revenue.

This will also be topped by a monthly contribution of Rs 100 from the gig worker. The companies would be required to make an annual contribution by June 30 each year on a self-assessment basis. The government will not contribute to the fund.

Companies, according to the daily, would be required to submit a form specifying the number of gig workers associated with them at the start of each financial year. Along with that, the preceding year's turnover must also be mentioned.

At the same time, the gig workers will have to update their particulars including address, job, period of engagement with the gig firm, contact number on the government portal in order to avail the benefits.

It must be mentioned that only the portable workforce that are engaged with e-commerce platforms, taxi aggregators and food delivery companies would be benefited by this scheme initially. White-collar gig workforce, usually known as freelance consultants, will not be part of this scheme in the first year.

Also read: Social Security Code: Govt notifies draft rules, seeks suggestions in 45 days