Gig Workers' Social Security: Government Weighs a 2% Transaction Levy on Aggregators
The Union government is considering a 2% levy on each transaction handled by aggregators (app-based companies such as food delivery, ride-hailing and quick-commerce platforms). The money would go into a fund for the social security of gig and platform workers.
The fund would pay for benefits such as insurance, health cover and maternity support for more than 12 million (1.2 crore) workers.
A per-transaction levy is seen as fairer across different kinds of aggregators, because each platform pays in proportion to the work it actually gives to workers, not on its total turnover.
The new social security scheme is expected to be launched in 2027. Workers will have to meet minimum work conditions to qualify (under the Social Security (Central) Rules, 2026: at least 90 days with one aggregator, or 120 days across several, in the previous financial year).
The legal base is the Code on Social Security, 2020, which came into force on 21 November 2025. Its Section 114 asks aggregators to pay 1% to 2% of annual turnover, capped at 5% of what they pay to workers. As of October 2026, the exact rate and the scheme itself had not yet been notified.
Gig and Platform Workers: Social Security in India's Gig Economy
A gig worker earns money from short, task-based jobs without being a regular employee of any company. A platform worker is a gig worker who gets this work through an app or website, such as a delivery rider or a cab driver. Because they are not "employees", old labour laws gave them no provident fund, health insurance or maternity benefit. The Code on Social Security, 2020 recognised them in law for the first time.
The proposed 2% levy is the money engine for the benefits these workers were promised in 2020. A per-transaction design brings the central model closer to the state models of Karnataka and Telangana, and makes each platform's share depend on how much work it actually gives out.
Code on Social Security, 2020
The Code on Social Security, 2020 is one of India's four labour codes. It merged nine older social security laws, such as the Employees' Provident Funds Act and the Employees' State Insurance Act, into one law. It also widened social security to cover unorganised, gig and platform workers, who were mostly left out earlier. Parliament passed it in September 2020, and it came into force on 21 November 2025.
The 2% transaction levy being discussed is a way to put Section 114 into practice. The Code already allows aggregators to be charged; the open questions were the rate and the method, which the government is now settling ahead of a scheme launch in 2027.
- Proposed levy: 2% per transaction on aggregators, to fund gig worker social security
- Beneficiaries targeted: over 12 million (1.2 crore) gig and platform workers
- Benefits: insurance, health and maternity support
- Expected scheme launch: 2027
- Legal base: Section 114, Code on Social Security, 2020 (in force since 21 November 2025)
- Code's contribution rule: 1% to 2% of annual turnover, capped at 5% of payments to gig and platform workers
- Social Security (Central) Rules, 2026 notified 8 May 2026: eligibility 90 days (one aggregator) or 120 days (several aggregators)
- NITI Aayog (2022): 77 lakh gig workers in 2020-21; 2.35 crore projected by 2029-30