Section 114 Code on Social Security, 2020: Social Security Fund for gig and platform workers

Section 114 of Code on Social Security, 2020: Social Security Fund for gig and platform workers

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment / Liability Limitation / Timeline Monetary Sums / Wages

(1) The Central Government shall establish and administer a Social Security Fund for gig workers and platform workers.

(2) The Social Security Fund shall be funded by: (a) 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 as may be notified, subject to a maximum of five per cent of the aggregate amount paid or payable by an aggregator to gig workers and platform workers; and (b) other sources as may be prescribed.

Legal Commentary & Landmark Judgments: Section 114

Section 114 of the Code on Social Security introduces a pioneering statutory framework for the formulation of social security schemes for gig workers and platform workers, financed through contributions from digital aggregators.

Core Legal Standard: Section 114 is one of the most progressive statutory innovations in Indian labour jurisprudence.
Digital Infrastructure Jurisdiction: It explicitly brings digital platform workers and gig workers—previously excluded as 'independent contractors'—under the umbrella of statutory social security.

Under sub-section (4), schemes under this section shall be funded through a combination of Central Government, State Government, and contributions from aggregators (e-commerce, ride-hailing, food delivery, logistics) at a rate between one to two percent of the annual turnover of the aggregator, subject to a cap of five percent of the amount payable to gig workers.

Key Landmark Precedents:

Indian Federation of App-based Transport Workers (IFAT) v. Union of India (W.P. (C) No. 1068/2021): The Supreme Court recognized that app-based delivery workers and drivers are vulnerable economic actors entitled to social security protections under Article 21, directing authorities to expedite registration and welfare schemes under the Code on Social Security.

Legal Commentary:

Section 114 dismantled the corporate defense that app-based workers are merely 'freelance delivery partners' outside labour law. Digital platform companies are legally required to contribute to the Social Security Fund, ensuring that millions of app workers obtain institutional health, life, and accident coverage.

Section 114: Social Security Fund for gig and platform workers

Section 114 of Code on Social Security, 2020: Social Security Fund for gig and platform workers

Legal Commentary & Landmark Judgments: Section 114