SUMMARY
- Karnataka is considering a 1-2% transaction fee on platforms like Zomato and Uber to fund gig worker welfare.
- The funds will support social security benefits such as health insurance and pensions for gig workers.
- The move is part of the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024.
The Karnataka government is contemplating the introduction of a 1-2% transaction fee on platforms such as Zomato and Uber to generate funds aimed at providing social security benefits for gig workers. This move follows the introduction of the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, which seeks to address the welfare needs of gig workers in the state.
The draft bill proposes the establishment of a welfare board for gig workers, with funds collected through the transaction fee being used to finance social security measures. These measures are expected to include health insurance, accident coverage, and pension schemes, among other benefits, ensuring that gig workers receive protection in an industry known for its lack of traditional employment benefits.
Karnataka’s decision to explore this transaction fee comes in response to the growing number of workers engaged in platform-based gig jobs, which have expanded rapidly across sectors such as food delivery, ride-hailing, and e-commerce. By implementing this fee, the state aims to create a more sustainable social security system for these workers, many of whom face precarious working conditions.
The Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024 is currently in the draft stage, and consultations with stakeholders are expected before finalizing the policy. Once implemented, Karnataka would become one of the first states in India to actively introduce legislative measures supporting the welfare of gig workers.
