Only a picture for the purposes of representation. | Photo Credit: Reuters
WA GIG -based decree based on the Karnataka platform (social security and social security), 2025, is a step forward to basic social security coverage, there are serious gaps related to the computation of well -being.
The Social Care Regulation specifies “payout” as a basic parameter for the calculation of well -being. “Payout” is defined as “the final payment made by the aggregator/platform to the concert worker …”. It also defines the “social fee” as from 1% and 5% of the payout for a concert worker. This formulation raises a number of questions. First, the range of 1-5% is likely to tend to the lower limit of 1%. For example, while social care construction staff provided 1-2% Cess, across states, real CESS took 1% of construction costs.
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Secondly, the lower part is clear dilution of the provisions of the provisions under the Code of Social Security Center. The code defines stopping as 1-2% turnover with a maximum ceiling of 5% of the payment to workers. This means that a minimum of 1% of turnover is minimal. The “paycheck”, as defined in the bill of Karnataka, which is a payment from the platform to the concert worker, is part and therefore less than the turnover of the platform. Therefore, CESS 1% on the payday is necessarily less than 1% of the reversal of the platform and violates the social security code.
We could proceed with this level against the financial results of Zomato. The company had a modified revenue of 7,790 GBP, while “delivery and related fees” were 3,900 GBP Crore (annual report 2024). Therefore, 2% CESS would barely equal 1% of the company’s fluctuations in the payout, which is the minimum provision of the platform within the code.
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The trend between food supply platforms is aimed at diversification to merchandising and its own production. There is any possibility that in such situations the payout may continue to decline as a turnover ratio, while the CESS rate at 2% payday is less than 1% of turnover conversion. From the example of Zomato, we can calculate that at 5% CESS when paying, additional costs that the customer bears at a purchase value of 100 GBP, hardly around 50 Paise. The customer would certainly not do these additional costs of covering social security for the platform worker. The employer’s contribution from Zomato at this level of representation would be less than a third of what clothing manufacturers in the state contribute to the state insurance of employees and the temporary employee fund to the worker.
There is another problem related to the platform work. With Namma Yatri in Bengalur, the Operation for the Autorickshaws sector has moved from the “commission” model to the “subscription” model. Basically, Namma Yatri does not offer a commission for its rides and passes the entire payment to the drivers. Instead, the driver pays Namma Yatri’s fixed subscription, which allows it to market with the platform for fixed duration. This is beneficial to drivers because the cost of a subscription on driving generally works much less than a commission for driving. Uber and Ola followed this model introduced by Namma Yatri for AuthorickShaw operations in Bengalur. The payment in this model from the platform to the driver is zero. How will it charge for this? Will it mean that the platform -based drivers will be excluded?
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A possible solution could be that for all platform operations after a subscription model, CESS payment could be built into a fee for customers, billing, say, 2% full amount of transaction. The financial portal for this model of work on the platform could be designed to transfer the amount of representation of each transaction to the system of validation and social fees, which is part of the bill. The quantum of 2% payments is not even so that customers who have reflected in these autorickshaws. Platforms in this case are unlikely to have objections because they are merely invited to serve as intermediaries for CESS transaction.
The platform sector is a complex and universal approach to everything will end only in chaos. CESS rates will have to be calibrated to meet the average employment conditions in each sector, ensuring that some minimum social security standards can be guaranteed.
Mohan Mani, guest colleague, National Law School of India University, Bengaluru
Published – 4th August 2025 12:32
