The Karnataka government will operationalise its long-pending social security framework for gig workers within a week. Labour Minister Santosh Lad confirmed the development on Monday. Aggregator platforms will face a uniform welfare fee of 1–1.5 percent on each transaction. The labour department will issue the official notification shortly.
After notification, the welfare fee will be collected from aggregator platforms. The amount will be transferred to the Karnataka Gig Workers’ Social Security and Welfare Fund. Officials said the process will begin after the gig workers’ welfare board is formally constituted. Karnataka is among the first states to implement a funding model under gig worker welfare law.
The Karnataka Platform-based Gig Workers Act allows the government to impose a fee between one and five percent. Different rates and transaction caps are also permitted under the Act. However, the state chose a uniform rate after consultations with industry stakeholders.
The framework does not clarify who will bear the financial burden. Platforms may absorb the cost or pass it on to consumers. Industry executives earlier warned that fresh levies could affect profitability. The welfare fund will also receive worker contributions and government grants. The fund will support health cover, accident insurance, and social security benefits.
