The Internet and Mobile Association of India (IAMAI) has called upon the Karnataka government to delay the enforcement of a gig worker welfare fee on e-commerce operators until operational specifics are clearly defined. This request comes in response to the Karnataka Platform-based Gig Workers (Social Security & Welfare) Act, 2025, which mandates e-commerce platforms to allocate 1% of their commission, with a capped limit, towards supporting gig workers’ welfare.
With the state government setting the levy cap at different levels based on the platform’s business model to ease the burden on smaller players, it aims to generate an annual fund of approximately ₹250-300 crore through this fee. Notable gig-based service providers like Amazon, Zomato, Uber, and Ola, among others, are active in Karnataka, employing a substantial workforce of gig workers.
IAMAI emphasized unresolved operational challenges that need addressing before the contributions to the Karnataka Gig Workers’ Social Security and Welfare Fund can commence. The association highlighted discrepancies between the state law and the central government’s Code on Social Security, 2020, regarding aggregator contributions towards gig workers’ social security.
Expressing concerns over potential duplicative obligations for aggregators due to unclear reconciliation mechanisms between state and central mandates, IAMAI proposed a temporary halt on welfare fee collection until alignment on inter-governmental reconciliation procedures is achieved. Moreover, the association pointed out the absence of notified welfare schemes under the state act, further complicating the implementation process.
Source: Tech-Economic Times