The Karnataka Platform-based Gig Workers Ordinance proposes levying a 1-5% charge per transaction as welfare fee for the workers.
The Karnataka government has reportedly set up two working groups to estimate the quantum of the fee to be levied towards securing the welfare of gig workers.
These groups comprise representatives from platforms, think tanks, technocrats and tech companies, as per an ET report, citing additional labour commissioner G Manjuanth.
The Karnataka Platform-based Gig Workers (Social Security and Welfare) Ordinance proposes levying a 1-5% charge per transaction as welfare fee for the workers. However, the ordinance does not specify the exact quantum of the welfare fee to be charged for the various kinds of private players operating in this domain such as Swiggy, Zomato, Ola, et al.
One of the sources told the publication that the state government has a possibility of fixing a higher rate on higher revenue-earning businesses, such as ride-hailing services.
So far, the Code on Social Security has set the threshold for fees at 5% of the amount paid to gig workers.
The development comes about three months after the Karnataka chief minister’s office (CMO) announced plans to establish a welfare board for gig workers, in April. At that time, it was noted that in Bangalore alone (the capital of Karnataka state) there are about 200,000 gig workers, which underscores the need for such protections in this rapidly growing sector.
Source: Inc42, The Economic Times
