The Karnataka government is considering imposing a 1-2% transaction fee on platforms like Zomato and Uber to generate funds for social security benefits aimed at gig workers. This proposal is part of the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, designed to address the growing welfare needs of workers in the gig economy.

This initiative highlights Karnataka’s recognition of the increasing number of gig workers and the need to create a sustainable social security system for them. The bill, currently in draft form, will undergo further consultation with stakeholders before being finalized. If passed, Karnataka could lead the way in providing legislative support for gig workers in India.

Key Highlights:

• Karnataka is exploring a 1-2% transaction fee on platforms like Zomato and Uber to fund social security for gig workers.
• The funds will support benefits like health insurance, pension schemes, and accident coverage.
• The Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024 is still in the draft stage and could make Karnataka a pioneer in gig worker welfare legislation.
• A transaction fee on platforms could provide funds for health insurance, accident coverage, and pension schemes for gig workers.
• The Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024 proposes a welfare board to manage the collected funds.
• With the gig economy expanding in sectors such as food delivery, ride-hailing, and e-commerce, Karnataka’s move aims to offer gig workers a safety net often absent in platform-based work.