Karnataka to Levy Welfare Fee on E-commerce Platforms for Gig Workers' Social Security
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Storyboard•28-01-2026, 16:11
Karnataka to Levy Welfare Fee on E-commerce Platforms for Gig Workers' Social Security
- •Karnataka will impose a welfare fee on e-commerce and app-based platforms to fund social security for gig workers under the Karnataka Platform-based Gig Workers (Social Security & Welfare) Act, 2025.
- •Platform operators will contribute 1% of their commission earnings, with per-transaction caps of 50 paise, 75 paise, or Re 1 to protect smaller platforms.
- •Collections will go to a dedicated Gig Workers Welfare Fund, overseen by a 16-member board chaired by the state labour minister.
- •The levy is estimated to generate Rs 250-300 crore annually, with aggregators remitting fees weekly to a board-managed bank account.
- •A digital system is being developed with IIIT-B and Azim Premji Foundation to track payments and verify contributions, covering an estimated 5 lakh gig workers in Karnataka.
Why It Matters: Karnataka pioneers legislation to fund social security for gig workers through a welfare fee on e-commerce platforms.
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