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IndiaTech Seeks a Rethink of India’s Gig-Worker Social Security Levy

IndiaTech has asked the labour ministry to reconsider the turnover-linked contribution for gig-worker social security. The proposal is not an adopted change, and both turnover- and payout-based approaches raise questions about fairness and implementation.
From TheFinanceBase Team4 min to read

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IndiaTech has proposed changing how aggregators calculate contributions to social security for gig and platform workers: use worker payouts or a per-transaction measure instead of annual turnover. As of Mint’s 4 October 2026 report, this was an industry proposal submitted to the Union labour ministry on 29 September—not an adopted change. The reported framework remains a 1–2% contribution linked to annual turnover, capped at 5% of the amount paid or payable to workers.

What IndiaTech wants changed

IndiaTech, an industry association representing new-age startups including Ola, Swiggy, Zomato and Porter, argues that annual turnover is an uneven basis for funding gig-worker social security. Its white paper proposes calculating contributions from the amount paid or payable to gig and platform workers, or from individual transactions, with sector-specific upper caps.

The association also argues that the law’s aggregator framing should evolve to cover newer business models, including platforms, principal service providers and subscription services. Mint reported that the labour ministry had not responded by publication; that report does not establish that the proposal is under active consideration or that a rule change is imminent.

How the reported contribution formula works

The Government of India’s Press Information Bureau described the Code on Social Security, 2020 as requiring aggregators to contribute 1–2% of annual turnover to a Social Security Fund for gig and platform workers, subject to a ceiling of 5% of the amount paid or payable to those workers. The 5% is a cap on the turnover-linked contribution, not an extra levy added on top.

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This is a description of the reported framework, not legal advice or a review of the current statutory text. Mint reported IndiaTech’s proposal; the PIB backgrounder describes the contribution and fund.

Why turnover can produce different bills

IndiaTech’s central argument is that turnover does not represent the same economic activity across platform business models. A commission-based, agent-style ride-hailing platform may record only the commission it retains as revenue. A principal or inventory-led business may record the full transaction value, or gross merchandise value, as revenue. Applying the same turnover percentage to those different accounting bases can yield different contribution liabilities even where worker activity is comparable.

Mint illustrated the distinction with a simplified ₹100 service: an agent could retain and record ₹20, while a principal could record ₹100. This example explains the accounting issue; it does not establish that every company mentioned in the coverage follows one particular accounting treatment.

Dhiraj Gyani, IndiaTech’s chief operating officer, argued that using accounting turnover rather than labour utilization creates “profound structural inequities” because turnover definitions differ among business models. That is the association’s position, not a finding that the current approach produces unfair outcomes in every sector.

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What the illustrative figures show—and what they do not

A 2026 Mint opinion used fiscal 2023–24 disclosures to illustrate how a 1% turnover levy could translate into very different monthly amounts per worker. Its calculations assumed similar worker earnings of around ₹27,000 a month. They are author calculations, not official assessments or verified individual contributions.

Illustrative business type Turnover or revenue cited Worker count cited Estimated contribution per worker per month at 1%
Ride-hailing ₹807 crore turnover About 650,000 active workers Roughly ₹10
Food delivery ₹6,361 crore turnover About 200,000 workers Roughly ₹265
Home services ₹738 crore revenue 50,000 workers Roughly ₹123
Quick commerce ₹2,310 crore revenue 134,000 workers Roughly ₹143

The spread illustrates why IndiaTech says a turnover base can yield widely different amounts per worker. It cannot, by itself, show the amount any worker would receive as a benefit, the final liability after applying the statutory ceiling, or what a payout-linked formula would collect. The underlying company disclosures and worker counts do not constitute a cross-platform audit.

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Why a payout-linked formula is contested too

A payout base could connect contributions more directly to the labour compensated, but it would not automatically make contributions equal or settle what rate is fair. Shaik Salauddin, co-founder and national general secretary of the Indian Federation of App-Based Transport Workers, said platforms do not all charge the same commission and that worker pay differences also need to be considered when seeking uniformity.

A separate PTI report carried by The Economic Times on 6 September 2026 described the counterargument that payout- or transaction-linked contributions could weigh heavily on high-frequency, low-ticket businesses such as ride-hailing, or become disconnected from a paying entity’s economic capacity. Those are concerns reported from analysts, not established empirical outcomes. A per-transaction rate would also need clear rules about which transaction counts, who pays when several entities are involved, and how cancellations or refunds are treated; the cited coverage does not set out a complete implementation model.

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The same PTI/Economic Times report described eligibility thresholds of 90 days engaged with one aggregator, or 120 days across multiple aggregators, in a financial year. That is secondary reporting on worker eligibility under the rules, rather than a feature of IndiaTech’s proposed contribution formula.

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What the levy is meant to support

The PIB says the Code gives gig and platform workers statutory recognition and describes government-notified social-security benefits that include accident insurance, health benefits and maternity benefits. It also describes worker registration through e-Shram and Aadhaar-linked IDs intended to make benefits portable across platforms.

Changing the contribution base would concern how aggregators fund the Social Security Fund; it would not, by itself, establish a change to an individual worker’s entitlement or guarantee a particular benefit. The sources cited here do not specify how IndiaTech’s suggested sector caps would be set or how any change would affect benefit levels.

What to watch next

The practical policy question is not simply turnover versus payouts. Any revised approach would need to define the contribution base consistently across business models, account for differences in worker pay and engagement, and set a cap that limits disproportionate liabilities without undermining fund contributions. The reported material presents competing arguments and illustrative calculations, not a final government position or a complete, independently audited comparison of the options.

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