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Karnataka Gig Workers Bill: Differential Fee on Aggregators

14 April 20251 min read
NATIONAL AFFAIRSKarnataka GigWorkers Bill:Differential Fee onAggregators14 April 2025safalsetu.com

Why in the news

Karnataka worked on a sliding levy on cab-hailing and similar platforms to pay for social security of gig workers.

Key facts

  • Fee: 1% to 5% of amounts paid to gig workers; bigger-revenue platforms pay more. The Code on Social Security sets the 5% ceiling.
  • Law: the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024, to be brought through the ordinance route.
  • The draft would go public for a month of stakeholder comments before rules are final.
  • Levy rollout likely within six months of rules and a payment and verification system being ready.
  • A Gig Workers Welfare Board would run schemes and handle the fund.

Context

AspectDetail
RajasthanFirst law for platform workers, July 2023; rules still pending
KarnatakaWould be first southern state
Political pushRahul Gandhi discussed it with CM Siddaramaiah in April 2024; he had backed gig workers during the 2022 Bharat Jodo Yatra
TelanganaCongress-ruled; obtained a copy of Karnataka’s draft

Significance

  • Revenue-linked contributions fund social security and could set a model for other states.

Exam angle

  • Maximum fee under Code on Social Security: 5%.
  • First state with a platform workers’ law: Rajasthan.

Test yourself

1. What is the range of the proposed fee on Karnataka platforms?

The fee ranges from 1% to 5% of payouts to gig workers.

2. Which state passed the first law for platform workers in July 2023?

Rajasthan passed the first such law in July 2023.

3. Through which route does Karnataka plan to implement its gig workers bill?

The government planned the ordinance route.