Karnataka plans to levy cess on online transactions to fund welfare of gig workers

Karnataka government is planning to levy a cess on online transactions to fund the welfare of gig workers engaged by technology platforms, Chief Minister Siddaramaiah announced in his budget on Friday.

The government, he said, will introduce the Platform-Based Gig Workers Fund and Welfare Fee Bill which would provide livelihood security to platform-based gig workers.

Labour Minister Santosh Lad told ET that he had already discussed the idea with platform companies, including Flipkart and Swiggy, and they have responded favourably to the idea. The government would soon roll out the programme, he said.


Siddaramaiah had, in his budget speech last year, announced a social security cover to gig workers engaged by ecommerce companies. The government later rolled out an insurance facility of Rs 4 lakh for each such worker, split between a life insurance of Rs 2 lakh and accidental insurance of Rs 2 lakh. The government has been paying the entire insurance premium.

Days before the assembly polls in May last year, AICC leader Rahul Gandhi had interacted with gig workers in Bengaluru, discussing their issues and even taking a 2-km ride with a delivery partner on his vehicle. He discussed the workers’ lives, asking them about their difficulties with rising prices and lack of stable employment.

In its assembly election manifesto, the Congress had promised to set up a gig workers’ welfare board and to ensure minimum hourly wage for workers in the unorganised sector. Bengaluru has an estimated 200,000 plus gig workers in Dunzo, Swiggy, Blinkit, and other delivery platforms.