The Indian government is developing a 2% transaction-based levy on aggregator platforms to fund life, health and accident insurance for gig and platform workers, with the fund expected to become operational in 2027.
The proposal shifts the funding model from the current turnover-linked structure under Section 114 of the Code on Social Security, 2020 to a per-transaction contribution borne by platform operators rather than by workers or the government. The National Social Security Board, which was officially notified on 30 October 2026, is scheduled to meet in the latter half of November to finalise the design. The Board is the statutory body that will recommend and administer schemes for gig and platform workers.
Under the proposed framework, workers must demonstrate at least 90 days of work with a single platform or 120 days across multiple platforms within a financial year to qualify for benefits, in line with the eligibility conditions under the Code on Social Security (Central) Rules, 2026. The existing rules require aggregators to contribute not less than 1% and up to 2% of annual turnover to the Social Security Fund, capped at 5% of amounts payable to gig and platform workers.
Industry association IndiaTech, which represents Ola, Swiggy, Zomato and Porter among others, submitted a white paper on 29 September 2026 urging the Union labour ministry to reconsider the turnover-based model.
“The levy should be based only on what’s actually paid to gig workers,” IndiaTech argued in its submission. The association said the current structure places a heavier burden on principal-model platforms that record full transaction values than on agent platforms that record only commissions. On a Rs 100 customer payment, an agent platform may record Rs 20 commission as revenue, while a principal platform may record the full Rs 100, as set out in the white paper summary.
Karnataka already runs a parallel per-transaction welfare fee of 1% to 5% on bookings under its state-specific platform-based gig workers legislation. A central 2% transaction-based regime would run alongside state schemes rather than replace them. The November meeting of the National Social Security Board is expected to clarify how the Code’s turnover ceiling, the proposed transaction levy and state-level fees will interact in practice.
