# Gig & Platform Worker Social Security

> The Code on Social Security recognises gig and platform workers for the first time. Aggregators — such as delivery, ride-hailing and services platforms — must contribute 1% to 2% of annual turnover, capped at 5% of the amount paid to gig and platform workers, to a social security fund, and share worker data. Workers register on the e-Shram portal to access schemes.

Practice: Labour Law & HR Compliance — https://www.industax.com/services/labour-hr/

The obligation depends on whether you are an 'aggregator' as defined and on the categories notified; marketplaces with independent sellers are treated differently from platforms that engage workers directly.

We assess applicability, compute the contribution, set up data-sharing and returns, and model the cost against your payouts.

## Key facts

| Item | Detail |
| --- | --- |
| Law | Code on Social Security 2020 |
| Contribution | 1–2% of turnover, capped at 5% of payouts to workers |
| Worker registration | e-Shram |
| Who pays | Aggregators as defined and notified |

## Who needs this

- Delivery and mobility platforms
- On-demand services marketplaces
- Startups engaging gig workers at scale

## What's included

- Applicability analysis
- Contribution computation
- Data and return setup

## Documents

- Business model and contracts with workers
- Turnover and payout data

## Process

1. **Assess** — Aggregator status determined.
2. **Compute** — Contribution worked out.
3. **Comply** — Payments and returns filed.

## FAQs

### Are gig workers employees under the Labour Codes?

No. Gig and platform workers are a separate category outside the traditional employer-employee relationship, with social security provided through schemes and aggregator contributions.

### Does every app-based business have to contribute?

Only businesses that are aggregators engaging gig or platform workers in notified categories. Applicability needs case-by-case review.

### Is the contribution deductible for income tax?

Contributions required by law and paid on time are generally deductible as a business expense.

## Official sources

- Shram Suvidha / e-Shram: https://eshram.gov.in/
- Ministry of Labour & Employment — Labour Codes: https://labour.gov.in/

---
Canonical page: https://www.industax.com/services/labour-hr/gig-platform-workers-compliance
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.