Industry bodies write to Karnataka government about lack of clarity around welfare fee of gig workers

As Karnataka is expected to implement the proposed 1% payment interest connected payouts to gig workers effective from April 5, 2026, industry bodies person written to the State Government expressing concerns about the deficiency of clarity around the same. 

Welfare schemes not specified 

IndiaTech.org, an industry association representing Indian startups and exertion companies, and the Internet and Mobile Association of India person written to the government, pointing retired that the payment schemes the interest is meant to money are yet to beryllium notified. 

“Karnataka has not clarified in the Act wherever the wealth collected will get deployed,” Rameesh Kailasam, CEO & President of IndiaTech.org, told The Hindu. 

He added that galore aggregators already supply security sum to gig workers done antithetic security providers, and, therefore, platforms request clarity connected what the authorities would screen truthful they tin set their existing sum accordingly.

Echoing akin sentiments, a communique from IAMAI noted that commencing mandatory payment interest publication without corresponding operational State schemes would hazard an unavoidable duplication of financial obligations, and may compel aggregators to discontinue existing backstage security coverage, resulting successful unintended gaps successful extortion for gig workers.

CoSS vs Karnataka Act

The associations stated that determination are disconnects betwixt the Code connected Social Security (CoSS) notified by the Central Government and the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025. 

CoSS mandates that each aggregator contributes between 1% and 2% of its yearly turnover towards the social information of gig and level workers. The Karnataka Act mandates a payment fee of 1% to 5% connected payouts made by aggregators to gig workers wrong Karnataka. 

Mr. Kailasam noted that portion the Karnataka Act states that payment interest payments made by aggregators would beryllium counted towards the publication that they are required to pay nether the CoSS, the Centre has not clarified its presumption connected the same.  

“Social information and payment of gig workers is important. But close now, it is simply a triangular conflict, and it could pb to chaos successful presumption of compliance. So, we person besides written to the Centre seeking clarity regarding notification of rules,” helium said. 

IAMAI excessively noted that successful the lack of clarity, aggregators whitethorn efficaciously beryllium enactment nether duplicative obligations.  

The associations sought to defer implementation of the payment interest until payment schemes nether the Act are notified, and clarity is provided connected however obligations nether the Karnataka Act volition align with those nether CoSS.