Swiggy To Ola: Karnataka Government To Collect 1% Welfare Fee From Aggregators For Social Security Of Gig Workers

In a significant move aimed at enhancing the welfare of gig workers, the Karnataka government has announced a new policy requiring digital aggregators to contribute a 1% welfare fee. This fee will be levied on companies such as Swiggy, Ola, and Urban Company, which provide platform-based services. The funds collected through this initiative are intended to support social security measures for gig workers, who often lack the benefits and protections available to traditional employees. The policy is particularly impactful for professional service providers like Urban Company, which has been identified as facing the highest cap under the new regulations. The Karnataka government’s decision reflects a growing recognition of the need to safeguard the rights and welfare of gig workers, who have played a crucial role in the state’s rapidly evolving service economy. This initiative is part of a broader trend across India, as various state governments begin to formulate policies that address the unique challenges faced by gig workers in an increasingly digital economy.