The Karnataka government has formed two dedicated working groups to evaluate and recommend the welfare fee that should be levied on platform-based businesses in order to fund social security measures for gig workers. This move is part of the state’s efforts to implement its recently introduced Karnataka Platform-based Gig Workers (Social Security and Welfare) Ordinance.
According to a report, the two panels include members from various stakeholders in the digital ecosystem, such as representatives of online platforms, technology experts, members of think tanks, and technologists from leading companies. “The groups will evaluate the fee quantum that should be charged towards the welfare of gig workers,” said G Manjunath, Additional Labour Commissioner.
The ordinance proposes a levy in the range of 1% to 5% per transaction conducted through platform-based services, such as ride-hailing, food delivery, and logistics. However, it stops short of defining a fixed rate for specific categories of businesses.
Sources cited in the report suggested that the state may introduce a tiered model where companies generating higher revenues—particularly in segments like ride-hailing—may be subject to higher welfare contributions.
As per the central Code on Social Security, the upper limit for such a welfare fee has been set at 5% of the payment made to gig and platform workers.
This development comes roughly three months after the Karnataka Chief Minister’s Office announced its intention to establish a dedicated welfare board for gig workers. The board is expected to frame policies and oversee initiatives to improve the working conditions and social protections for individuals employed in the gig economy, which includes a rapidly growing workforce in sectors such as food delivery, mobility, and home services.
