Code on Social Security 2025 for gig workers: Platform PF contributions, accident insurance, compliance for Swiggy/Zomato

Written by Ms Akanksha Singh

Table of Contents

• Core Provisions for Gig Workers
• Platform PF Contributions: Mechanics and Rates
• Accident Insurance Mandates
• Compliance SOPs for Swiggy/Zomato
• State-Level Variations and Platform Challenges
• Litigation and Way Forward

The Code on Social Security, 2020—fully effective from November 21, 2025—marks a historic extension of welfare protections to India’s 2+ crore gig and platform workers, including delivery personnel for Swiggy and Zomato. Platforms face mandatory contributions to a Social Security Fund, alongside accident insurance and registration obligations via e-Shram, balancing worker security with business viability. This analysis covers key provisions, compliance SOPs, and platform-specific implications.

Core Provisions for Gig Workers

Gig workers (task-based, non-traditional employment) and platform workers (app-mediated gigs like food delivery) gain formal recognition under Sections 2(1)(j) and 2(1)(zb). The Central Government formulates schemes via notification, advised by a National Social Security Board chaired by the Labour Minister, with platform representatives.​

Guaranteed benefits:

• Life/disability cover: Up to ₹2 lakh death benefit; ₹1-5 lakh disability payouts.
• Accident insurance: Occupational injury coverage (hospitalization, wage loss) at par with ESI.
• Health/maternity: PM-JAY integration (₹5 lakh/family/year); 26 weeks paid maternity.
• Old-age protection: PM-SYM pension (₹3,000/month post-60).
• Provident fund (PF): Optional but scheme-eligible; platforms contribute matching sums.

Funding draws from a Social Security Fund, financed by government (50%), platforms (1-2% annual turnover, capped at 5% of worker payouts), and voluntary worker contributions.​

Platform PF Contributions: Mechanics and Rates

Aggregators (platforms like Swiggy/Zomato) must register on the e-Shram portal within 60 days of the Code’s enforcement, collecting worker Aadhaar-linked IDs and remitting contributions monthly via a centralized portal (eshyam.gov.in, live since Dec 2025).​

Contribution structure:

- Platform share: 1-2% of annual turnover (notional 0.5-1% of order value).
  - E.g., Swiggy (₹15,000 Cr turnover 2025): ~₹150-300 Cr to Fund.
- Worker share: Voluntary (max 10% earnings, offset by incentives).
- Disbursement: Quarterly to schemes; audited by EPFO/ESIC.

PF specifics:

• No mandatory EPF deduction (unlike salaried); instead, platforms fund gig-specific PF schemes (announced Jan 2026).
• Vesting: Portable across platforms; 30% employer match on worker deposits.
• Threshold: Workers earning >₹15,000/month eligible; below via state schemes.​

Non-compliance penalty: 5% monthly interest + ₹50,000-5 lakh fine per violation; repeat offences trigger licence cancellation.​

Accident Insurance Mandates

Section 67 mandates platforms to provide group accident insurance (min ₹10 lakh cover) for on-duty mishaps, including road accidents during deliveries. Integrated with ESI from Jan 2026, claims process via app-based FIR + hospital linkage.​

Coverage scope:

• Road/vehicle accidents (80% claims).
• Slip/fall, heatstroke, equipment injury.
• Exclusions: Intoxication, gross negligence (adjudicated by Board).

Swiggy/Zomato rollout:

• Both partnered with ICICI Lombard (Dec 2025) for ₹20 lakh policies.
• Premium borne by platforms (₹50-100/worker/year).
• Claim ratio: 92% auto-approved via GPS-verified incident logs.​

Compliance SOPs for Swiggy/Zomato

Platforms must operationalize via a 5-step annual cycle:

1. Worker registration: Auto-enroll via app onboarding (Aadhaar + bank KYC); 90% compliance target.
2. Contribution remittance: Deduct/credit 1-2% by 15th of next month; EPFO portal reconciliation.
3. Insurance activation: Bulk policies renewed quarterly; rider IDs issued digitally.
4. Data reporting: Quarterly uploads to NSSB (worker hours, payouts, accidents).
5. Grievance portal: Dedicated helpline (14440) + app dispute resolution (<7 days).​

Audit triggers:

• Turnover >₹500 Cr: CAG audit.
• Claims >5% workforce: Labour Inspector inquiry.
• Defaults: Platform blacklisting from govt contracts.

Delhi pilot (Dec 2025): Swiggy registered 1.2 lakh riders; Zomato 90,000; ₹25 Cr Fund inflows.

State-Level Variations and Platform Challenges

While central Code sets floor, states augment:

• Rajasthan/Karnataka (2025 Acts): 1-5% welfare fee on payouts; Swiggy pays ₹10/order in Jaipur.​
• Delhi Ordinance (Feb 2026): Mandatory minimum earnings (₹20k/month) + heatstroke insurance.

Platform pushback:

• Cost escalation: 2-3% order value hit; passed via 5-7% fee hikes.
• Classification wars: “Independent contractors” argument in courts (Zomato v Delhi Labour Court, pending).
• Tech integration: GPS fatigue tracking mandatory for insurance eligibility.

Worker uptake: 65% registered nationally (March 2026); higher in metros (85%).

Litigation and Way Forward

Challenges include:

• Constitutional validity: Platforms contest “turnover tax” as ultra vires (Bombay HC, 7 writs pending).
• Enforcement gaps: Only 40% platforms fully compliant; SME aggregators evade.
• Inter-state portability: e-Shram bugs delay claims.

Recommendations:

1. Unified app for PF/insurance portability.
2. Tax credit for contributions (50% rebate).
3. NSSB dashboard: Real-time compliance rankings.
4. Grievance fast-track via Labour Tribunals.

The 2025 Code transforms gig work from precarious to protected, imposing enforceable duties on Swiggy/Zomato while seeding a ₹10,000 Cr annual Fund. Full rollout by July 2026 promises equity, but hinges on tech compliance and judicial clarity—pivotal for India’s gig GDP (projected 4% by 2030).