Swiggy, Zepto, Eternal rivals on same board: What govt's new gig worker welfare panel means

Swiggy, Zepto and Eternal may compete for customers in India's quick commerce and food delivery markets, but representatives of the three companies will now share a platform to discuss the welfare of gig and platform workers.

In a LinkedIn post, Madhav Kasturia, founder and CEO Zippee, highlighted the constitution of the National Social Security Board for Unorganised Workers and Gig and Platform Workers, saying the government has brought competing platforms together to deliberate on social security for delivery partners and other gig workers.

While the government notification has not provided any names for the members of the board, Kasturia mentioned that Swiggy, Zepto and Eternal are on it.

The Ministry of Labour and Employment notified the constitution of the board on October 30 under the Code on Social Security. The statutory body will recommend and monitor welfare schemes for unorganised workers, gig workers and platform workers.

These schemes could cover health and maternity benefits, accident and disability insurance, life insurance and old-age protection, according to Kasturia's post.

Why the board matters for gig platforms

The development also has financial implications for aggregator companies. Kasturia pointed to provisions under the Social Security Code that require aggregators to contribute 1-2% of their annual turnover, subject to a cap of 5% of payments made or payable to gig workers.

The applicable contribution rate and the date from which it will take effect are yet to be notified, he said.

Such contributions could add to the costs platforms need to account for in their delivery economics.

The challenge of extending benefits to gig workers

Kasturia also flagged a practical challenge -- gig workers may work with multiple platforms, move between cities or switch between full-time employment and gig work. Ensuring that their records, eligibility and insurance benefits remain accessible across these transitions will be important.

The government's notification assigns the board the task of recommending suitable welfare schemes, advising the Centre on matters related to the Code and monitoring social welfare schemes. It will also review record-keeping functions at the state level and expenditure from the relevant fund and account.

The board is required to meet at least three times a year.

Kasturia said the recommendations and their implementation would determine how easily delivery partners can access these benefits when they need them.