In 2026, the familiar sight of a delivery partner or ride-hailing driver represents more than just convenience, it marks a historic shift in Indian labour law.
With the nationwide rollout of the Code on Social Security, 2020 on November 21, 2025, gig and platform workers have transitioned from informal status into a regulated social safety net.
As a Senior Labour Law Consultant, I’ve advised aggregators on a singular truth:
Flexibility is no longer an excuse for lack of protection.
1. Legal Recognition: Sections 113 & 114
The Code bypasses the old “employee vs. contractor” debate by creating two new categories:
- Gig Workers
- Platform Workers
Section 113 mandates registration of these workers.
Section 114 empowers the Central Government to launch social security schemes covering health, maternity, accident, and old-age benefits equivalent to ESIC-style coverage, but under a new framework.
2. Aggregator Contribution: The Turnover Model
Unlike traditional ESIC (3.25% employer share), gig worker benefits are funded differently:
- Contribution Rate: Aggregators must contribute 1-2% of annual turnover.
- Cap: Total contribution must not exceed 5% of payouts to gig workers.
- Purpose: Funds go to the National Social Security Fund, earmarked for worker welfare including life/disability cover, health benefits, and retirement protection.
3. Eligibility: The 90-Day Rule
To access benefits, workers must meet a 90-day engagement threshold in the preceding financial year.
- Registration: Workers must register on the e-Shram portal and obtain an Aadhaar-linked UAN (Universal Account Number).
- Portability: This UAN allows workers to switch platforms without losing social security credits.
4. Compliance Challenges
While the intent is progressive, execution demands precision:
- Data Accuracy: Aggregators must share verified engagement logs to confirm eligibility.
- Cost Planning: The 2% turnover contribution is a top-line compliance cost—now part of 2026–27 financial forecasting.
- Vendor Governance: Third-party logistics providers must also comply, with updated indemnity clauses.
The Aggregator Compliance Checklist (2026 Edition) – Please find below free checklist for compliance:
Target Audience: Fleet Managers, HR Compliance Heads, Platform Operations
A. Digital Identity & e-Shram Integration
- UAN Mapping for all active partners
- API sync with Central Social Security Board
- Profile audit: bank details, nominee info
B. 90-Day Rule Tracking
- Tamper-proof engagement logs
- System alerts at 90-day threshold
- Exclusion reports for forecasting
C. Financial Accuracy
- Platform-specific turnover calculation
- Monthly accrual of 1–2% contribution
- Cap check: ≤5% of gig worker payouts
- Quarterly filings on aggregator portal
D. Vendor & 3PL Governance
- Map vendor workers to UAN system
- Update indemnity clauses in contracts
Free Tip from Key4Comply
The 1-2% turnover contribution is technically a fee paid to the Social Security Fund.
But if platforms fail to register workers, authorities may reclassify them as traditional employees-triggering 12% PF + 3.25% ESIC liability.
Compliance is the cheaper option.
Disclaimer: This content is for educational purposes only and reflects the status of the Code on Social Security as of early 2026. It does not constitute legal advice. Given the evolving nature of draft rules and state-level notifications, please consult with the experts at Key4Comply for tailored compliance audits.