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Salary will increase due to new Labor Codes, but prices will increase on Swiggy-Zomato? Know the whole story! Money Live

Salary will increase due to new Labor Codes, but prices will increase on Swiggy-Zomato? Know the whole story! Money Live
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On one hand, the new Labor Codes being implemented in India are going to increase the salary, PF, and retirement benefits of the employees, while on the other hand, it will have a direct impact on E-commerce, Food Delivery, and Gig Economy Platforms. Platforms like Swiggy, Zomato, Ola, Uber will now have to contribute 1–2% of the annual turnover or 5% of the total payments made to gig workers to the Social Security Fund to be created by the government. If the maximum 5% contribution is implemented, the additional charge is likely to increase to around ₹3.2 on a food delivery order and ₹2.4 on a quick-commerce order. Media reports say that this expense can be passed on the users by increasing Platform Fee, Surge Charges, or Delivery Fee. Although gig workers already get facilities like accident insurance, health insurance, non-payment of wages cover and maternity benefits, their social security coverage will increase further after the new codes. The challenge is that gig workers do not have fixed working hours, change platforms and work on multiple apps simultaneously, which can be operationally difficult to implement. In the video we will understand the complete effect in easy language.

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