Karnataka Govt Set To Impose 1-2% Fee On Aggregator Platforms To Support Gig Workers: Report

The proposed fee will be added to the total amount of each order placed through these platforms and passed on to the welfare board

This initiative follows the Karnataka government's introduction of the draft Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, which was unveiled in June

Source : PTI

The Karnataka government is likely to introduce a 1-2 per cent fee on transactions made through popular aggregator platforms such as Zomato, Swiggy, Flipkart, Amazon, Ola, Uber, Urban Company, and others. The move is part of a broader effort to provide social security for gig workers engaged in these platforms.

A senior government official revealed to Moneycontrol that the fee, once implemented, will be directed towards a welfare board dedicated to supporting gig workers in delivery and other platform-based services. The funds collected from the fee will go towards introducing social security measures for these workers.

The proposed fee will be added to the total amount of each order placed through these platforms and passed on to the welfare board. While aggregator companies will not benefit financially from the levy, the move may result in slightly higher costs for consumers, potentially discouraging frequent orders due to the 1-2 per cent price increase.

A senior Karnataka government official told Moneycontrol, "We are planning to collect a welfare fee that will be levied on a per-transaction basis, ranging from 1-2 percent order on each platform. The fee will be collected by the respective aggregators, who will eventually pass it on to a welfare board that we are establishing."

This initiative follows the Karnataka government's introduction of the draft Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, which was unveiled in June. The new fee structure will affect a wide range of platforms, including ride-sharing, food and grocery delivery, logistics, e-marketplaces, and professional service providers such as healthcare, travel, and media services.

The platforms impacted by the proposed fee include not only the big names such as Zomato and Uber but also services like Rapido, Dunzo, Zepto, Porter, and Namma Yatri. Once passed, the collected funds will be channeled into providing social protection for gig workers across these industries.