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Uber, Swiggy and Ola may deposits 5 of their wage payment in social security fund

Draft rules have been published on Sunday by the labour ministry for functioning of provisions in the code of social security, 2020 which was passed and approved by government so that there should be a balance of money among every sector, it was done ...

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Draft rules have been published on Sunday by the labour ministry for functioning of provisions in the code of social security, 2020 which was passed and approved by government so that there should be a balance of money among every sector, it was done in month of September. The code envisages a social security fund for the unorganized, gig and platform workers, among other measures. There are many undeveloped sectors and to maintain the economy of our country everyone should have employment and for that a proper education must be circulated from every centre to every corner.

Gig workers will be able to register themselves through Aadhaar card on a government portal to avail the benefits from the fund, there is an online process for it because the management should be very transparent and frequent so that everyone can enjoy the fruit of it and no one is left. The database of these workers are in the form of entries so that it will be crosschecked when distributed that no one is left. Since it is a very big project and there is also a possibility of scam for which it is thoroughly checked that on one Aadhaar number only one candidate is allowed to get the fund. Aggregators such as Ola, Uber, Swiggy and Urbanclap, these big distributors generates a huge amount of revenue annually and weekly it may be required to deposit 1-2% of their annual turnover or 5% of their payment made to workers on their platform. It is mandatory and issued by government. Whatever is lowered to the proposed fund to provide social security benefits to their staff.

It depends on them whether they choose to pay amount from the annual income or from the amount paid to worker. The government is in favor of setting the contribution at the lower end of the band, a report is mentioned citing n official, the amount is distributed further by the government. The official mentioned above said a dedicated scheme for gig and platform worker will be formulated soon after getting feedback. They can change the structure of distribution once they get a feedback comments and suggestions.

A disability cover was provided through the scheme, accident insurance, healthy and maternity benefits and allowance will be included in it and also the benefits and old age protection among others. The proposed schemed will be funded by contributions from state and central government and will be checked by the members in government and different ministries. At present, unorganized gig and platform workers are not eligible for any social security benefits and most in the unorganized sector aren’t assured of minimum wages. There are many unorganized sector workers who don’t get benefit of social security because they are working under some private vendors and may be on a contract basis so they won’t get any other benefit other than their weekly or monthly payment. Workers face problem when they have to pay a lot of amount in hospitals for their medical treatment so government come up with this scheme. According to the draft rules, it has been proposed to take away the abilityof field officers to halt construction activity indefinitely, which is expected to improve the ease of doing business and end the inspector raj in sector. A framework has been hailed that India was putting up this in place. Government took a consultative approach to the draft regulations and moved quickly to draw them up within six months of discussion. The draft rules provide a simple interface and can be registered through Aadhar.

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