New Labour Codes: Does Zomato-Swiggy Increase their Platform Fees? Know about it
New Labour Codes: The Labor codes finally came into effect on November 21st in India. These new rules will have an impact on gig economy platforms like Swiggy and Zomato. According to a report by brokerage firm Kotak Institutional Equities, these companies may now be required to contribute 1-2% of their annual turnover to the government’s social security scheme.
This contribution is capped at 5% of the total payment made to gig workers. If this 5% limit is implemented, Kotak estimates that the additional burden will be approximately ₹3.2 per food delivery order and approximately ₹2.4 per quick commerce order.
According to Kotak’s report, this additional cost will ultimately be passed on to customers. This means that platform fees may increase in the future, or companies may introduce new charges.
However, platforms already offer services like accident insurance, health insurance, loss-of-pay coverage, and maternity benefits. If the government requires all these benefits to be provided through a central fund, the additional cost could be reduced to around ₹1-₹2 per order.
