2 weeks ago

Rejig Social Security Contribution Formula for Gig Workers

Rejig Social Security Contribution Formula for Gig Workers
Level the field: why the social security contribution formula for gig workers should be rejigged · livemint.com

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.

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

Sources

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