Zomato, Swiggy to give up to 2% yearly turnover for welfare of gig workers

Online aggregators, which include companies like Zomato, Swiggy, Zepto, will now be required to contribute up to 2 per cent of their annual turnover, capped at 5 per cent of payments, towards the welfare of gig and platform workers.

- UDISHA SRIVASTAV

The development comes as the country announced four Labour Codes on Friday, including the Code on Social Security (2020).

Under the code, for the first time, the definitions of ‘aggregator’, ‘gig worker’, and ‘platform worker’ have been mentioned.

According to the Ministry of Labour and Employment, the code will provide security to all workers such as provident fund (PF), employees’ state insurance corporation (ESIC), insurance, and other social security benefits.