Karnataka to impose slab-based cess fee on aggregators
The Karnataka labour department is likely to introduce a slab-based structure to collect welfare funds from aggregators to support the Karnataka Gig Workers Social Security and Welfare Fund. According to government officials, the labour department is considering a welfare fee levy of 1-5 per cent based on the payouts made to gig workers and the commission structures of platforms.
The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, which got its assent from Karnataka Governor Thaawarchand Gehlot on Tuesday, mandates the state government to set the cess percentage for aggregators within six months (November 2025) of the ordinance coming into force. The ordinance extends to aggregators, including Swiggy, Zomato, Amazon, Ola, and Uber, among others.
Dr Manjunath, Additional Labour Commissioner, Karnataka, told The Indian Express, 'We are consulting all the platforms and considering their inputs. The draft rules for setting the cess percentage will be finalised by Monday. We will be inviting public and stakeholder feedback before formalising the rule.'
The government is studying the financial modalities the aggregators have with gig workers in services like ride sharing, food and grocery delivery, logistics, e-marketplace for wholesale/retail sale of goods and services, healthcare, travel and hospitality, and content and media services.
Meanwhile, industry body Internet and Mobile Association of India (IAMAI) will also hold a key meeting with its members, including the leading aggregator platforms, over Karnataka's gig workers ordinance on Monday.
During last year's consultations on the draft bill, industry voiced concerns over a uniform fee structure, citing its unsuitability for varied platform business models. The proposed slab-based approach appears to address these concerns by tailoring the welfare fee to different platform types.
For instance, SaaS (Software-as-a-Service) platforms like Namma Yatri that operate on subscription fees rather than transaction commissions could be subject to lower welfare fee rates of 1-2 per cent. In contrast, commission-based aggregators such as Swiggy, Zomato, Zepto, Ola, Uber, Amazon, and Flipkart may face higher fees, potentially scaling up to 5 per cent, depending on their revenue models and transaction volumes.
Sanath Prasad is a senior sub-editor and reporter with the Bengaluru bureau of Indian Express. He covers education, transport, infrastructure and trends and issues integral to Bengaluru. He holds more than two years of reporting experience in Karnataka. His major works include the impact of Hijab ban on Muslim girls in Karnataka, tracing the lives of the victims of Kerala cannibalism, exploring the trends in dairy market of Karnataka in the aftermath of Amul-Nandini controversy, and Karnataka State Elections among others. If he is not writing, he keeps himself engaged with badminton, swimming, and loves exploring. ... Read More
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