The Karnataka government has introduced a welfare fee on transactions conducted through platforms like Zomato, Swiggy, Ola, and Uber to fund social security programs for gig workers. Labour Minister Santosh Lad announced that the proceeds will be dedicated to the welfare of delivery personnel and drivers.
“The Labour Department has decided to impose a small charge on every transaction through aggregators like Zomato, Swiggy, Dunzo, Zepto, Ola, and others. This fee will be used for a welfare fund for gig workers. It will only apply to transport services, not goods,” Lad clarified.
A recent report from Moneycontrol mentioned the planned levy of 1-2% on transactions via these platforms, with the collected amount directed to a welfare board supporting gig workers in Karnataka. This initiative is part of the government’s upcoming Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, set to be introduced in the winter session.
Despite concerns from aggregator companies, the government is determined to implement this fee, which may lead to slightly higher costs for customers. Extensive consultations with stakeholders, including gig workers’ unions, industry associations, and organizations like NASSCOM and ILO, were conducted to finalize the details.
This new move comes after 32 rounds of meetings and is aimed at ensuring better social security for the gig workforce in Karnataka.
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