Government considers 2 percent transaction levy on businesses to fund gig worker social security

This levy will fund benefits such as insurance, health, and maternity support for over 12 million workers. Aggregators are digital platforms that connect service providers with customers, while transaction levies act as indirect charges on gross billings to finance public welfare programs. This potential shift alters operational cost structures for digital platforms, moving from voluntary welfare contributions to a mandatory transaction-linked model affecting millions of platform workers.

CAs and corporate tax advisors must review client payroll models, evaluate cash flow impacts of the prospective 2% charge, and update compliance documentation. Businesses should track official ministry notifications, draft rules, and stakeholder consultation papers leading up to the 2027 rollout.

Bottom line: planning for this upcoming levy protects corporate margins and ensures proactive compliance with evolving labor welfare mandates.