New labour codes: Aggregators now have to pay 1-2% of turnover for gig workers' welfare

Four new labour codes, notified by the government, have come into effect from November 21, 2025, which state that aggregators like Zomato, Swiggy, and Urban Company will have to contribute 1-2% of their annual turnover for the welfare of the gig and platform workers.

The new provisions of the Labour Codes consolidate the 29 central labour laws, and include gig work, platform work and aggregators within it for the first time.

The notification also said that Aadhaar-linked Universal Account Numbers will make welfare benefits easy to access, fully portable, and available across states, regardless of migration.

Teamlease Regtech CEO Rishi Agarwal said, "India's gig economy finally got its long-overdue recognition. For years, the country's gig workers subsidised its growth from the margins. Today, they step into the system."

The notification has also brought in several far-reaching changes which extend to multiple sectors. For example, fixed-term employees will receive all benefits equal to permanent workers, including leave, medical and social security. Gratuity eligibility will be after just one year instead of five years. The government said this promotes direct hiring and reduces excessive contractualisation.

Further, it has mandated annual health check-ups for all employees above the age of 40.

On the new regulations, Xpheno co-founder Kamal Karanth said, “The proposed labour reforms signal a strong push toward formalising India’s workforce and expanding social security. However, these measures may introduce notable cost implications for employers, and the reforms may feel slightly mistimed for many enterprises and sectors amidst current market challenges.”

He further noted that nearly 6 million white-collar employees are aged over 40, and mandatory annual health screenings for this segment will add a significant cost load. Also, reforms related to PF and ESI for gig, contract, and fixed-term workers do have a significant cost to be budgeted. With gratuity eligibility reduced to one year, companies will now have to revisit their cost models and workforce planning.

For the employees in the technology industry, the new labour codes state that the release of salary is mandatory by the 7th of every month, equal pay for equal work is made mandatory, and there will be guaranteed social security benefits through fixed-term employment and mandatory appointment letters.

On the new laws, Nasscom said, “These changes can support workforce mobility, strengthen trust and enhance India’s attractiveness as a hub for high-value technology and digital services.”

Though industry observers believe that the intent of the new labour codes is positive, it will take some time for businesses to bring about these changes, especially on the deadlines for implementing these new rules.