In a letter to the Karnataka government, the association highlighted that while the Code on Social Security (CoSS) mandates aggregators to contribute between 1–2 per cent of their annual turnover to gig workers’ welfare, the separate Act passed by the state also mandates a welfare fee of 1–5 per cent.
“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,” IAMAI wrote, adding that a resolution should come prior to the commencement of welfare fee contributions to the Karnataka Gig Workers’ Social Security and Welfare Fund.
“The IAMAI has accordingly requested the Government of Karnataka to keep financial contributions under the Act in abeyance until alignment between the Government of India and the Government of Karnataka is in place on the mechanism for inter-governmental reconciliation,” it said.
The IAMAI noted that, as of date, no welfare schemes have been notified or operationalised under the Act and many aggregators already provide insurance coverage. As per the IAMAI, commencing mandatory welfare fee contributions without corresponding operational state schemes would risk an unavoidable duplication of financial obligations and may compel aggregators to discontinue existing private insurance coverage, resulting in unintended gaps in protection for gig workers.
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