Karnataka Introduces New Cess for Gig Workers’ Welfare
The Karnataka government has announced a new cess on transactions made through aggregator platforms like Zomato, Swiggy, Ola, and Uber. This initiative aims to provide social security to gig workers. Karnataka Labour Minister Santosh Lad stated that the cess will be applied to transport services, not on the products or goods purchased by consumers. The funds collected will contribute to a welfare fund for gig workers.
The state has drafted a bill to protect the rights of platform-based gig workers, focusing on social security, occupational health, safety, and transparency. The bill proposes the establishment of a welfare board and fund for these workers. Gig workers typically engage in short-term or project-based jobs as independent contractors rather than being employed by a single company.
Currently, gig work lacks specific labor laws, though some Indian labor laws partially cover this sector. The Employment Compensation Act, 1923, requires employers to compensate for work-related accidents, but its applicability to gig workers is yet to be clarified by courts. Cess is a tax used to promote services like health and education, often for social development purposes.
Doubts Revealed
Karnataka -: Karnataka is a state in the southern part of India. It is known for its rich culture, history, and technology hubs like Bengaluru.
Cess -: A cess is a type of tax that is collected by the government for a specific purpose, like improving social services or infrastructure.
Gig Workers -: Gig workers are people who work on short-term or flexible jobs, often through online platforms like Zomato or Uber. They don’t have the same job security as regular employees.
Zomato -: Zomato is an online platform in India where people can order food from restaurants and have it delivered to their homes.
Uber -: Uber is a company that provides ride-sharing services, allowing people to book rides through a mobile app.
Social Security -: Social security refers to government programs that provide financial support and assistance to people in need, like the elderly or unemployed.
Labour Minister Santosh Lad -: Santosh Lad is a politician in Karnataka who is responsible for matters related to labor and employment in the state.
Draft Bill -: A draft bill is a proposal for a new law that is being considered by the government. It needs to be discussed and approved before becoming an official law.