Latest news with #SocialSecurityandWelfare)Ordinance
Indian Express
5 days ago
- Business
- Indian Express
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
Time of India
5 days ago
- Business
- Time of India
Consumers in Karnataka may have to pay more for cab rides, food deliveries and other services. Here's why
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Bengaluru News 1. Bengaluru rains: Get ready for another week of rains as IMD predicts showers till May 31 Karnataka is preparing to bring in a new welfare law for gig and platform workers. According to a TOI report, while the move has been widely appreciated, it may result in consumers paying more for cab rides, food deliveries, and other app-based proposed Karnataka Platform-based Gig Workers' (Social Security and Welfare) Ordinance, 2025 includes a 1%–5% cess to create a welfare fund for nearly 30,000 gig workers in the state. Officials said the cost would be shared between customers, platforms, and the workers themselves, though the end user is expected to bear the Karnataka cabinet's decision to introduce the ordinance has been seen as a positive step. But the real challenge lies in how the cess will be collected and the law enforced on the Manjunath, Additional Labour Commissioner, said, as quoted by TOI, 'The Act has been framed in such a manner that all three stakeholders can contribute to the welfare fund.' He added that gig workers could also voluntarily contribute more to improve their social security. He said the rules will likely be finalised within a concerns have been raised about the fine print. Balaji Parthasarathy, Principal Investigator at Fairwork India and professor at IIIT-Bengaluru, told TOI, 'The legislation outlines the terrain, but implementation will hinge on rules, particularly how wage protection, dispute resolution, and algorithmic accountability are addressed.'He warned that there's no wage-floor guarantee. 'Transparency in deductions is a start, but without clear limits on payout cuts, platforms can reduce per-task payments to make up for the cess,' he said. Parthasarathy also noted, as quoted by TOI, that while platforms don't talk to worker groups, they have made collective representations through bodies like Nasscom and IAMAI to oppose parts of the a legal perspective, the law is a formal recognition of gig work. However, Vikram Shroff, partner at AZB & Partners, said as quoted by TOI, that some of the termination-related clauses may face legal challenges, especially if they clash with current agreements between platforms and also warned of possible confusion once the national social security code is implemented, saying, 'Two sets of laws may govern gig worker entitlements, potentially leading to regulatory overlap.'According to the draft rules, platforms will be placed in different cess slabs depending on whether they provide delivery, transport, or personal services. Officials expect to raise around ?150 crore a year through this the worries, some companies support the plan. Athira, Vice-President for Public Policy at Porter, called the ordinance a 'progressive and much-needed step' that recognises gig workers and their social security needs. 'We remain committed to working with both state and central governments,' she said, as quoted by from TOI
