Saturday

13-12-2025 Vol 19

Karnataka’s New Policy: 5% Fee on Online Platforms to Safeguard Gig Worker Interests

Karnataka has introduced a 5% fee on major online platforms like Amazon, Flipkart, Uber, and Ola, with the aim of creating a fund dedicated to the welfare of gig workers. This initiative is designed to address the ongoing challenges faced by gig workers who, despite their vital contributions to the digital economy, often find themselves without basic social security and benefits.

The Gig Economy: A Growing Yet Vulnerable Workforce

The gig economy has grown rapidly in Karnataka, with millions of people relying on platforms like Amazon, Flipkart, Uber, and Ola for income. These workers play a pivotal role in the state’s economy, but their working conditions are often precarious, with little to no job security or access to healthcare, insurance, and other benefits that are standard in traditional employment.

The Welfare Fund: What It Will Offer

The 5% fee on online platforms will be used to fund a welfare fund for gig workers. The fund will offer:

  • Health Insurance: Ensuring that gig workers have access to affordable medical care.
  • Retirement Plans: Providing financial security for workers after they retire.
  • Accident and Injury Compensation: Workers who suffer from injuries while on the job will receive compensation for medical expenses and lost wages.
  • Legal Support: Gig workers will have access to legal assistance to navigate disputes or unfair treatment by platforms.

Conclusion

Karnataka’s new policy represents a significant leap toward securing the rights of gig workers. By using the revenue generated from a 5% fee on online platforms, the state is taking a proactive approach to addressing the welfare needs of this essential but often vulnerable workforce.

Jitendra Kumar

Jitendra Kumar is an Indian journalist and social activist from Hathras in Uttar Pradesh is known as the senior journalist and founder of Xpert Times Network Private Limited.