Gig Worker Social Security Levy: What Aggregators Need to Know
IndiaTech has asked the Union labour ministry to review the calculation of the gig worker social security levy. Its white paper, submitted on 29 September, proposes linking contributions to the amount paid or payable to gig and platform workers instead of annual turnover.
Gig worker social security levy: what the current rule means
Under the Code on Social Security, 2020, aggregators must contribute 1-2% of annual turnover towards social security for gig and platform workers, subject to a cap of 5% of the amount paid or payable to those workers.
The Code was enacted in September 2020 and implemented on 21 November 2025. It consolidates several social-security laws and extends coverage to unorganised, gig and platform workers.
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The calculation can differ by business model. An agent platform may record only its commission as revenue, while a principal platform may record the full transaction value, or Gross Merchandise Value, as revenue. In the source’s example, a customer pays ₹100, an agent platform records ₹20 as revenue, and a principal platform records the full ₹100.
IndiaTech argues that this can produce different contribution liabilities for comparable gig-worker activity. It has proposed a basis linked to worker payments or individual transactions, alongside sectoral upper caps.
The 5% cap and business models
The 5% cap does not necessarily remove the difference between models. Principal-model platforms may reach the cap quickly, while marketplace or agent-model platforms may remain below it.
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