More than a dozen companies including Amazon, Flipkart, Swiggy, Ola, and Uber have committed around INR 500 crore to the governments proposed social security fund. The fund aims to provide health insurance to one million gig workers in the country.
The contribution made by the companies is based on one percent of their revenues. They were given an option by the government to contribute either one to two percent of their revenues or five percent of the wages of their workers. It was finally pegged at one per cent of revenues.
Gig workers covered under these benefits will be able to access medical, maternity, disability, and other benefits. They will also have access to ESIC hospitals.
Employers contributions will be topped by a monthly contribution of INR 100 from the gig worker. The companies would be required to make an annual contribution by June 30th each year on a self-assessment basis. The government will not contribute to the fund. The rules for this fund under the Code on Social Security 2020 will be notified soon.
This article was first published on IDR Online