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Section 113: Schemes for gig workers and platform workers

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IX: Social Security for Unorganised, Gig & Platform Workers
Competent Labour Forum
Act No. 36 of 2020
Section 112 All 163 Sections of Code on Social Security, 2020 Section 114

Legal Commentary & Landmark Judgments: Section 113

Section 113 of the Code on Social Security, 2020 introduces a historic statutory framework for extending social security to gig workers and platform workers, empowering the Central Government to formulate welfare schemes funded through a statutory contribution of 1% to 2% of annual turnover from digital aggregators.

  • Central Welfare Schemes for Platform Economy: Mandates that the Central Government shall frame and notify, from time to time, suitable social security schemes for gig workers and platform workers on matters relating to: (a) life and disability cover; (b) accident insurance; (c) health and maternity benefits; (d) old age protection; (e) crèche facilities; and (f) any other benefit as determined by the Central Government.
  • Aggregator Contribution Benchmark (1% to 2% Turnover): Section 113(4) enacts that any scheme notified under this section may be funded through contributions from aggregators at such rate, not exceeding two per cent, but not less than one per cent, of the annual turnover of every such aggregator, subject to a statutory cap ensuring the contribution does not exceed five per cent of the total amount paid or payable by an aggregator to its gig and platform workers.
  • Multi-Stakeholder Social Security Fund: Establishes a dedicated Social Security Fund for gig and platform workers into which aggregator contributions, Central/State grants, and beneficiary contributions are pooled, administered by the National Social Security Board constituted under Section 6.
  • Aadhaar-Seeded Self-Registration and Portability: Requires every gig worker and platform worker to register on a designated national electronic portal by submitting a self-declaration and Aadhaar authentication, securing a universal digital identity card that guarantees benefit portability across multiple digital platforms.
Key Landmark Precedents:
  • Indian Federation of App-based Transport Workers (IFAT) v. Union of India (Writ Petition (Civil) No. 1068 of 2021, SC): The Supreme Court entertained a public interest petition seeking the enforcement of fundamental rights under Articles 14 and 21 for gig and platform workers, directing the Union Government to expedite social security protection under the Code on Social Security, 2020.
  • Uber BV v. Aslam [2021] UKSC 1: The Supreme Court of the United Kingdom established the global landmark ratio that digital app-based platform workers subject to algorithmic management and contractual subordination are 'workers' entitled to statutory minimum wages, working hours limits, and social benefits, rejecting the defense that aggregators are mere technology intermediaries.
  • Dharangadhra Chemical Works Ltd. v. State of Saurashtra 1957 SCR 152: The Supreme Court held that the existence of supervision and control—adapted to modern technological modalities—is the essential criterion of an employment relationship, laying the foundation for recognizing gig work subordination.
Courtroom Practice & Strategic Litigation Guidance:

Digital platforms, e-commerce marketplaces, ride-hailing aggregators, and food delivery apps must immediately audit their financial reporting to separate gross annual turnover from net commission revenues. Establish an automated accounting reserve of 1% to 2% of annual turnover to satisfy Section 113 contribution mandates. Aggregator legal teams should collaborate with the Ministry of Labour to configure API pipelines between their driver/delivery-partner onboarding platforms and the national e-Shram database, ensuring that every onboarded worker is registered and issued a social security UAN.

Section 112 All 163 Sections of Code on Social Security, 2020 Section 114