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The Seventh Schedule · Social Security Code

Classification of Aggregators

The Seventh Schedule lists the nine categories of aggregators (digital intermediaries or marketplaces that connect buyers or users with sellers or service providers) that section 114(4) of the Code refers to when it asks aggregators to contribute towards social security schemes for gig workers and platform workers. It names ride sharing, food and grocery delivery, logistics, e-marketplaces, professional services, healthcare, travel and hospitality, and content and media, and ends with a catch-all for any other goods and services platform. An aggregator that falls within one of these categories is one that section 114(4) can ask to contribute, at a rate the Central Government notifies within the band set by that section.

1 section ~1 min read Official text, PDF p. 116
Aggregators and platform businessesStartup founders running apps or marketplacesCompliance and legal teamsGig and platform workers

Key points

  1. 1The schedule lists nine categories of aggregators, and section 114(4) uses this list to decide which aggregators come within the contribution requirement for gig and platform worker schemes. §schedule
  2. 2The named categories are ride sharing, food and grocery delivery, logistics, e-marketplaces, professional services, healthcare, travel and hospitality, and content and media. §schedule
  3. 3E-marketplaces are covered under both the marketplace model and the inventory model, for wholesale or retail sale of goods or services, to businesses (B2B) or to consumers (B2C). §schedule
  4. 4Item 9, any other goods and services provider platform, is a catch-all, so a platform outside the eight named fields can still fall within the list. §schedule
  5. 5The schedule only classifies aggregators. It sets no contribution rate and no start date. Section 114(4) puts the rate at between 1 and 2 per cent of the aggregator's annual turnover, as notified by the Central Government, capped at 5 per cent of what the aggregator pays or owes to gig and platform workers, and section 114(5) leaves the start date to a notification. §schedule

THE SEVENTH SCHEDULE — CLASSIFICATION OF AGGREGATORS

In plain words

Lists nine categories of aggregators, from ride sharing and food delivery to healthcare and content platforms, plus a catch-all for any other goods and services platform, for use under section 114(4).

[See section 114(4)]

Sl.No.Classification of Aggregator
1.Ride sharing services
2.Food and grocery delivery services
3.Logistic services
4.e-Market place (both market place and inventory model) for wholesale/retail sale of goods and/or services (B2B/B2C)
5.Professional services provider
6.Healthcare
7.Travel and hospitality
8.Content and media services
9.Any other goods and services provider platform

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