BENGALURU: The Internet and Mobile Association of India (IAMAI) has written to the Karnataka Government, highlighting operational considerations that merit resolution prior to commencement of welfare fee contributions to the Karnataka Gig Worker’s Social Security and Welfare Fund under the Karnataka Platform-Based Gig Workers Act, 2025 (Act).
The IAMAI highlighted that the Code on Social Security, 2020 (CoSS), notified by the Central Government, already mandates that every aggregator contribute between 1% and 2% of its annual turnover towards the social security of gig and platform workers.
Simultaneously, the Act mandates a welfare fee of 1% to 5% on payouts made by aggregators to gig workers. While the Act provides that welfare fee payments shall be deemed to satisfy contribution obligations payable under CoSS, the operational mechanics of such adjustment remain unclear, with any guidelines or notifications to define the reconciliation mechanism yet to be issued.
In the absence of such clarity, aggregators may effectively be put under duplicative obligations. The IAMAI requested the state government to keep financial contributions under the Act in abeyance until alignment between the Centre and the Karnataka government is in place on the mechanism for inter-governmental reconciliation.
The IAMAI noted that no welfare schemes have been notified or operationalised. Many aggregators already provide insurance coverage through private insurers, with premiums borne by aggregators.