Zomato and Swiggy gig workers will also avail these facilities along with pension

For social safety, gig workers shall obtain ESIC well being facilities in addition to a pension. For this well being service, too, gig workers will not must contribute from their wages, however a part of the contribution offered by aggregator corporations in direction of pension will go to the ESI fund.

With a view to keep away from any threat to funds from the Gig Workers Pension Fund, the Ministry of Labour has determined to switch all duty for working it to the Staff Provident Fund Organisation (EPFO). Some quantity from the pension fund will be invested within the ESIC fund

After confirming that the plan to grant a part of the pension fund quantity to the ESIC fund for providing well being companies to gig workers is full, top-level sources within the Ministry of Labor indicated that its monetary burden will not fall on workers.

A small a part of the quantity that the aggregator corporations will pay for pension fund contribution on each billing transaction for the pension fund will go to the Staff’ Well being Insurance coverage Company i.e., ESIC. Aggregator corporations have agreed with the Ministry of Labor to provide two p.c of every billing transaction as a pension contribution for the pension of gig workers.

This was accomplished to strengthen the defend of social safety, along with being low-paid, as a result of this will present full medical facilities for any form of illness of gig workers, and there will be no monetary burden on them.

In case of job loss, gig workers will naturally get some facilities like a wage for 3 months, insurance coverage safety underneath ESI by coming underneath its purview. Whereas feminine gig workers will get the good thing about maternity profit and go away.

The supply also stated that after deliberating on a number of choices concerning handing over the duty of the pension fund of gig workers, the Ministry of Labor has determined within the remaining proposal that EPFO ​​​​will function it.

Choices of handing over the duty of working the gig workers’ pension fund to LIC and nationalized banks had been thought-about, however they had been ignored in view of the market dangers with LIC and the sovereign assure of deposits as much as 5 lakhs within the financial institution. EPF is probably the most appropriate for pension fund operation as a result of the sovereign assure of the complete quantity deposited in it’s of the federal government.