What are the new labour codes for gig workers in India?

India has implemented four new labour codes that define gig work and require platforms to contribute 1-2% of their turnover towards worker welfare.

How will Zomato be affected by the new labour codes?

Zomato's parent company, Eternal Ltd, welcomes the codes, expecting them to strengthen social security for its gig workers without negatively impacting business.

What is the financial obligation for gig platforms under the new codes?

Gig platforms must contribute 1-2% of their annual turnover, capped at 5% of payments to gig and platform workers, for their welfare.

Home / Business and Economy / Gig Platforms to Fund Worker Welfare: New Labour Codes Emerge

Gig Platforms to Fund Worker Welfare: New Labour Codes Emerge

22 Nov

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Summary

Gig platforms must allocate 1-2% of turnover for worker welfare.
Four new labor codes aim to simplify, protect, and modernize employment.
Zomato's parent company supports the new regulations for gig workers.

Gig Platforms to Fund Worker Welfare: New Labour Codes Emerge

India has officially implemented four new labor codes, consolidating 29 existing laws to streamline the employment landscape. These codes are designed to formalize work, enhance worker protections, and align the labor ecosystem with global standards.

Central to these new regulations is the requirement for 'gig work,' 'platform work,' and 'aggregators' to contribute between 1 to 2 percent of their annual turnover. This contribution, capped at 5 percent of the amount paid to workers, is earmarked for the welfare of gig and platform employees.

Eternal Ltd, the parent company of Zomato and Blinkit, has expressed support for the codes. They believe the new framework will strengthen social security access for their gig workforce and anticipate no detrimental financial impact on their business's long-term sustainability.