Karnataka To Impose New Cess On Aggregator Platforms To Support Gig Workers' Welfare

The Karnataka government has introduced a new cess on transactions made through aggregator platforms such as Zomato, Swiggy, Ola, Uber, and others, aimed at creating a social security fund for gig workers, according to media reports. Labour Minister Santosh Lad, addressing the press, stated that the cess would be levied on transportation-related transactions conducted via these platforms, not on the purchase of goods.

Lad emphasised that the funds collected would be used to establish a welfare fund dedicated to the rights and safety of gig workers. According to media reports, The state has already drafted a bill aimed at ensuring social security, occupational health, and transparency for platform-based workers. The bill also provides for the creation of a welfare board to manage these benefits.

Gig workers, often involved in short-term or freelance roles, have yet to receive full legal protections under Indian labor laws, though some existing laws may apply. This new initiative by the Karnataka government seeks to fill that gap by providing better protections for this evolving workforce.