Karnataka is planning to implement a 5 percent fee on aggregator platforms, including Amazon, Flipkart, Ola, and Uber, to establish a gig workers' fund, says Chief Minister Siddaramaiah.

"The platforms will pay gig workers a 5 percent cess of the total payout. The state government will provide additional funds to support welfare schemes for gig workers," Siddaramaiah.

The announcement follows Siddaramaiah's meeting with Congress leader and Leader of the Opposition in the Lok Sabha Rahul Gandhi in Delhi regarding the Gig Workers' Bill. The meeting took place amid reports of disagreement among state ministers about the Bill.

The Chief Minister's Office said the Karnataka government will create a Gig Workers' Welfare Board to support workers at companies like Amazon, Flipkart, Ola, and Uber.

Karnataka Labour Minister Santosh Lad says, "The Karnataka Platform-Based Gig Workers Bill suggests a 1-2 percent cess per transaction for the gig workers' fund. The cabinet will decide the final cess percentage. The Social Security Code permits up to 5 percent cess."

The 2020 Social Security Code mandates platforms hiring gig workers to allocate 1-2 percent of yearly revenue—capped at 5 percent for worker contributions—toward social security, which includes life, disability, accident insurance, and health benefits.

The presentation of the Bill, which was scheduled for last year, experienced postponements because of disagreements among ministers. Labour Minister Santosh Lad endorsed the bill, while IT-BT Minister Priyank Kharge and Industries Minister MB Patil voiced worries regarding its impact on startups and industries. The meeting at Gandhi's residence was attended by all three ministers.

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Shaik Salauddin, National General Secretary of the Indian Federation of App-Based Transport Workers says, “The Karnataka Gig Workers' Bill represents progress in recognising gig and platform workers as vital economic contributors. The legislation must guarantee fair wages, job security, and social protection for app-based economy workers."