2 weeks ago
Rejig Social Security Contribution Formula for Gig Workers
Sometimes, people work jobs that come from phone apps, like delivering food.
These workers are called gig workers, and they are paid by app companies called aggregators.
The law, called the Code, says these companies must help pay for gig workers' support.
They should pay between 1% and 2% of their yearly earnings into a special worker fund.
There is also a rule that they never pay more than 5% of the money they give to workers.
All the companies follow the same percentage, so it seems fair.
But the amount each company earns in a year is counted in different ways.
That means different companies can end up paying very different amounts.
Some people think this is not fair and the rule should be changed.
They want the formula for payments to be fairer for everyone.
Under the code, aggregators must contribute 1% to 2% of their annual turnover to a social security fund.
Contributions are subject to a ceiling of 5% of the amount paid to gig and platform workers.
The contribution rate is common across all platforms.
The turnover base used to calculate contributions varies substantially across platforms.
The article argues the formula should be rejigged to level the field for gig workers.
- Who
- Aggregator platforms and gig and platform workers covered by the code
- What
- A call to rejig the social security contribution formula for gig workers because the turnover base varies substantially across platforms
- Where
- Not specified in the articles
- When
- Not specified in the articles
- Why
- The contribution rate is common across platforms, but the turnover base on which it is calculated varies substantially, creating uneven contributions
Key facts
- Contributors
- Aggregators
- Beneficiaries
- Gig and platform workers
- Contribution rate
- 1% to 2% of annual turnover
- Contribution ceiling
- 5% of the amount paid to gig and platform workers
- Rate across platforms
- Common
- Turnover base
- Varies substantially across platforms







