May 16, 2025

Karnataka’s 5% Fee Proposal: Boosting Welfare for Gig Workers in the Digital Economy

News - 2025-04-04T183726.539
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Karnataka’s government has unveiled a proposal to impose a 5% fee on online platforms like Amazon, Flipkart, and Uber to fund welfare programs for gig workers. This bold step is aimed at addressing the growing concerns over the lack of social security for gig workers, who have become essential to the state’s digital economy.

The Gig Economy’s Impact on Karnataka

The gig economy in Karnataka has flourished in recent years, thanks to the rise of tech platforms and the growing demand for on-demand services. However, gig workers often face precarious working conditions, including job insecurity and the absence of benefits like health insurance and retirement savings.

The 5% Fee and Its Potential Benefits

The 5% fee, which will be charged on all transactions made through e-commerce and ride-hailing platforms, will help fund welfare programs for gig workers. These programs may include health insurance, accident coverage, and pension plans. The funds raised will also support efforts to improve the working conditions and safety of gig workers.

Conclusion

While the 5% fee may face opposition from businesses, it has the potential to transform the lives of gig workers in Karnataka. By providing essential benefits and protections, the state is taking an important step toward ensuring the welfare of this growing segment of the workforce.

Journalist Details

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.