Latest news with #KarnatakaPlatform-basedGigWorkers
Time of India
27-05-2025
- Business
- Time of India
K'taka gig workers' welfare scheme takes off
Bengaluru: Karnataka govt Tuesday issued an ordinance to implement the long-promised Karnataka Platform-based Gig Workers (social security and welfare) scheme, two years after announcing it in election manifesto. Following opposition from within the administration and stakeholders, the state finally moved ahead with the ordinance after direct intervention by Congress leader Rahul Gandhi. The ordinance enables formation of a welfare board dedicated to gig workers. One of the key challenges faced by the government was devising a mechanism to fund the welfare board. According to the ordinance, the corpus will be built through a levy ranging from a minimum of 1% to a maximum of 5% on each transaction involving platform-based gig workers. The transaction payout is calculated based on the distance travelled by the gig worker for delivery of goods or services. The ordinance states that the welfare levy -- officially termed the 'Gig Worker Welfare Fee' -- may vary across categories of aggregators or platforms. It also leaves room for this levy to be applied with or without a cap. The exact rates for each platform will be notified within six months. Additionally, the ordinance mandates all platforms to register with the newly formed Gig Workers Welfare Board within 45 days. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like China Power: Washington's loss, Beijing's gain as Chinese students shun the US for SE Asia? CNA Read More Undo Officials from the already-existing Karnataka State Unorganised Workers' Welfare Board will also serve on the new board. +++++ Platforms considered employing gig workers under the ordinance include: * Ride-sharing services * Food and grocery delivery services * Logistics services * E-marketplaces (both marketplace and inventory models) for wholesale/retail sale of goods and/or services (B2B/B2C) * Professional activity providers * Healthcare platforms * Travel and hospitality services * Content and media service providers
Time of India
14-05-2025
- Business
- Time of India
Karnataka eyes gig fund rollout by August end; labour dept engages platforms to fix fee
The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024 has been sent by the government to Raj Bhavan with a request to issue an Ordinance. The rules will suggest differential rates of fee for services, such as ride hailing, food delivery and online retail. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The state government hopes to operationalise the gig workers' welfare fund in August as it engages app-based service providers in conversation to determine the percentage of fee the platforms must government has sent the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024 to Raj Bhavan with a request to issue an Ordinance. 'We hope to implement the law by the end of August,' labour minister Santosh Lad told ET. His department is currently engaged in stakeholder consultations ahead of the framing of draft rules under the proposed rules will suggest differential rates of fee for services, such as ride hailing, food delivery and online retail. Final rules will follow the government studies and stakeholder feedback. The government's current stance is that the rate must be proportionate to the size of net earnings. 'The welfare fee will not be based on the turnover, but on the service (delivery) charges,' Lad minister said about 20 rounds of meetings have been held so far with the parties being on the same page on gig workers' fee payable by platforms to the fund would range from 1% to 5% on the commission paid to gig and platform workers. The Code on Social Security caps the fee at 5% of the labour department is also examining the likely impact of the proposed fee on customers, Additional Labour Commissioner G Manjunath said. Bengaluru is estimated to have about 2.75 lakh gig workers engaged in a range of services including ride-hailing, ecommerce and food government has opted for the Ordinance route after AICC leader Rahul Gandhi cleared the broad contours of the policy last month. Karnataka has touted its proposed law as a rights-based one, aiming to protect the rights of the gig and platform came up with the Bill last year, after Rajasthan passed a law in July 2023, becoming the first state to introduce a law for platform workers. The state, however, is yet to frame minister said Karnataka will emerge as the first state to introduce welfare programmes for gig workers once it implements the law. 'We are the first state to have such a welfare fund for gig workers. The proposed law also ensures there are no arbitrary firings of workers by platforms.'The subject gained momentum after Gandhi discussed it with chief minister Siddaramaiah in Delhi, last month. The government had soft-pedalled on the idea after sections of ecommerce, ride-hailing and delivery platforms resisted the move, last year.
