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Karnataka plans to levy cess on online transactions to fund welfare of gig workers

Economic Times

Economic Times · 1y ago

Karnataka plans to levy cess on online transactions to fund welfare of gig workers

The Karnataka government is planning to introduce a cess on online transactions to support the welfare of gig workers employed by technology platforms. The proposed legislation, called the Platform-Based Gig Workers Fund and Welfare Fee Bill, aims to provide livelihood security to platform-based gig workers. The state's Chief Minister, Siddaramaiah, has already discussed the idea with major platform companies like Flipkart and Swiggy, who have responded positively. Last year, the government introduced an insurance facility for gig workers engaged by e-commerce companies.

Related News

Karnataka forms working groups to fix gig worker welfare levy, tech integration - The Economic Times

Economic Times

Economic Times · 1m ago

Karnataka forms working groups to fix gig worker welfare levy, tech integration - The Economic Times

Karnataka plans to establish a gig worker welfare board, becoming the first southern Indian state to do so. The board will be funded by a 1-5% levy on gig worker payouts, with higher revenue platforms contributing more. Two working groups will finalize levy rates and technology integration, with input from various stakeholders. The initiative is part of the Gig Workers (Social Security and Welfare) Ordinance and aims to benefit around five lakh gig workers in the state.

Gig workers’ welfare programme: With ordinance out, Karnataka to issue draft rules in two weeks

Economic Times

Economic Times · 3m ago

Gig workers’ welfare programme: With ordinance out, Karnataka to issue draft rules in two weeks

Karnataka plans to implement draft rules on charging fees to online platforms to support gig workers' welfare programs, following the Gig Workers (Social Security and Welfare) Ordinance's clearance. The rules will address aspects including the gig workers’ welfare board. The initiative, supported by Rahul Gandhi and various ministers, aims to operationalize the welfare fund by August's end. The regulation targets platforms offering services like ride-hailing and food delivery, impacting approximately five lakh gig workers in the state.

Karnataka announces cess on transactions conducted through aggregator platforms to support gig workers

Economic Times

Economic Times · 10m ago

Karnataka announces cess on transactions conducted through aggregator platforms to support gig workers

The government of Karnataka plans to impose a new cess on transactions made through aggregator platforms like Zomato, Swiggy, Ola, and Uber. The move aims to provide social security to gig workers. The accrued funds will be used for gig workers' welfare. The state government has drafted a bill to protect the rights of platform-based gig workers, which includes obligations on aggregators regarding social security, transparency, and occupational health and safety. Gig work falls outside traditional labor laws in India, and this measure seeks to address that gap.

Karnataka may levy differential fee on app-based services to fund gig workers welfare

Economic Times

Economic Times · 4m ago

Karnataka may levy differential fee on app-based services to fund gig workers welfare

Karnataka plans to implement a differential fee on app-based services to fund gig workers' welfare, with rates between 1% and 5% of platform commissions. The move follows Rajasthan's pioneering law and aims to protect gig workers' rights. The Karnataka Platform-based Gig Workers Bill 2024, set to be enacted via an Ordinance, will feature a welfare board and require stakeholder consultation. The initiative aligns with Congress's push for gig worker welfare, as advocated by Rahul Gandhi.

Karnataka Assembly passes gig workers social security Bill - The Economic Times

Economic Times

Economic Times · 7d ago

Karnataka Assembly passes gig workers social security Bill - The Economic Times

The Karnataka legislative assembly passed the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, establishing a welfare fund for gig workers. It imposes a fee of 1-5% on worker payouts per transaction, varying by aggregator category. This legislation aims to offer social security, health, and safety benefits to gig workers and is expected to address the needs of around four lakh gig workers in Karnataka. A board will oversee dispute resolution and welfare scheme implementation.

Karnataka eyes gig fund rollout by August end; labour dept engages platforms to fix fee

Economic Times

Economic Times · 3m ago

Karnataka eyes gig fund rollout by August end; labour dept engages platforms to fix fee

The Karnataka government plans to operationalize a welfare fund for gig workers by August, aiming to protect their rights and provide social security. It is engaging with app-based service providers to determine a fee percentage that these platforms must contribute. The Karnataka Platform-based Gig Workers Bill, pending as an Ordinance, seeks to introduce welfare programs and prevent arbitrary firings. The initiative aligns with national efforts to safeguard gig workers, following a similar move by Rajasthan.

Coming soon: Karnataka plans 5% fee on online platforms to fund gig worker welfare

Economic Times

Economic Times · 4m ago

Coming soon: Karnataka plans 5% fee on online platforms to fund gig worker welfare

Karnataka is set to introduce a fee on online platforms, based on commissions paid to gig workers, to support their social security. This initiative revives a previously stalled bill, emphasizing gig worker welfare. The government plans to establish a welfare board to devise and execute schemes. Consultation has occurred with stakeholders like Amazon and Flipkart. The aim is to draft a comprehensive bill addressing gig workers' rights and introduce a minimum hourly wage.

Karnataka aims to ensure proposed gig workers bill is ‘win-win for all’

Economic Times

Economic Times · 1y ago

Karnataka aims to ensure proposed gig workers bill is ‘win-win for all’

The Karnataka state government is seeking wider consultation on a bill to extend social security benefits to gig workers. The proposed law would require platform-based aggregators to pay a fee on each online transaction to fund social security and welfare expenses for gig workers. The government plans to open a 10-day window for companies to offer their comments before placing the bill before the legislature. Bengaluru, which has the largest number of gig workers in India, would be significantly impacted by the legislation.

Fair representation, transparent contracts: Gig workers' suggestions on Karnataka draft bill

YourStory

YourStory · 1y ago

Fair representation, transparent contracts: Gig workers' suggestions on Karnataka draft bill

Various organizations, including IFAT and Vidhi Centre for Legal Policy, have submitted suggestions to the Karnataka government for the draft Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2024. The joint submission emphasizes the inclusion of platform worker representatives on the Gig Workers Tripartite Welfare Board, calls for tighter registration norms, fair contracts between aggregators and gig workers, and income security measures. The submission also proposes a welfare fee for gig workers, to be covered by aggregators or customers. The bill aims to protect gig workers' rights and provide dispute resolution mechanisms.

Karnataka to Launch Gig Workers' Welfare Fund by August End

StartupTalky

StartupTalky · 3m ago

Karnataka to Launch Gig Workers' Welfare Fund by August End

Karnataka is set to launch a gig workers' welfare fund by August, following in Rajasthan's footsteps. The state government is negotiating with app-based services to determine the percentage of fees they must contribute. The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024 has been sent to Raj Bhavan for approval. This pioneering move aims to protect gig workers' rights, with proposed service charge-based fees from platforms, fostering social security for about 2.75 lakh workers in Bengaluru.

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