Statutory Background
The Employees’ Provident Fund Act, 1952 applied only to employees in a formal employer–employee relationship. Gig and platform workers were excluded.
The Code on Social Security, 2020 (enforced from 21 November 2025) introduces new definitions and obligations, extending social security protections beyond traditional employment.
Key Provisions with Section References
1. Definitions (Section 2)
- Gig Worker – Section 2(35): A person who performs work outside the traditional employer–employee relationship.
- Platform Worker – Section 2(60): A worker engaged through online platforms.
- Aggregator – Section 2(6): A digital intermediary or marketplace that connects workers with consumers.
2. Social Security Fund (Section 114)
- Establishes a Social Security Fund for gig and platform workers.
- Aggregator Contribution – Section 114(4):
- 1–2% of annual turnover.
- Capped at 5% of the total amount paid to gig/platform workers.
- This is not Provident Fund under the EPF Act, 1952. It is a separate statutory fund.
3. Benefits (Section 109 & 110)
Schemes notified under the Code may provide:
- Old-age protection.
- Health and maternity benefits.
- Life and disability cover.
- Accident insurance.
4. Registration (Section 113)
- Workers must register on the e-Shram Portal.
- Each worker receives a unique registration number linked to Aadhaar.
- Benefits are portable across platforms.
5. Eligibility Threshold (Draft Rules, 2025)
- Minimum 90 days of work in the preceding year required for eligibility.
- Labour unions are advocating reduction to 60 days to cover seasonal and part-time workers.
Compliance Advisory for Clients
- Do not equate this with PF: Legally, gig workers are covered under the Social Security Fund, not the EPF Act.
- Ensure aggregator compliance: Platforms must calculate and deposit turnover-based contributions.
- Encourage worker registration: Benefits are accessible only through e-Shram enrolment.
- Monitor scheme notifications: Certain benefits (like pension) are pending full rollout.
Comparison Snapshot
| Aspect | EPF Act, 1952 | Code on Social Security, 2020 |
| Coverage | Employees in formal establishments | Gig & platform workers |
| Contribution | 12% employer + 12% employee | 1–2% aggregator turnover (≤5% payouts) |
| Fund Type | Provident Fund | Social Security Fund |
| Benefits | Retirement corpus, pension, insurance | Old-age, health/maternity, accident, life/disability |
| Portability | UAN across employers | e-Shram registration portability |
| Effective Date | 1952 onwards | 21 Nov 2025 |
Final Position
The Code on Social Security, 2020 does not extend PF to gig workers. Instead, it creates a parallel social security framework funded by aggregators, accessible through e-Shram registration, and designed to provide comprehensive welfare benefits.
Disclaimer
This article is for educational purposes only and does not constitute legal advice. Employers should consult qualified labour law advisors for case-specific compliance.