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The Hemant Soren-led Jharkhand government is mulling to impose a tax on gig economy platforms like Swiggy, Zomato, Ola, Uber, and Big Basket for their operations within the state. According to the reports, the companies will have to pay a cess amounting to 1-2 percent of their total business conducted in Jharkhand.
The capital collected via this tax will be partially allocated for the welfare of gig workers, including delivery personnel and drivers. The labor department is drafting the necessary legislation to implement this policy, which will soon be presented for cabinet approval.
To recall, Rajasthan and Karnataka had already enacted law for this purpose and Jharkhand is set to become the third state in India to provide social security to gig workers.
The proposed legislation by the Jharkhand government includes provisions for financial support from the state, along with contributions from employers through taxes or cess. It also addresses scenarios such as overtime work, accidents, and other contingencies. Gig workers registered with the department will be eligible for benefits under the state’s social security schemes.
Gig workers are actively engaged across almost every city in the state. Despite their growing presence, the Labor Department has yet to conduct a formal survey to ascertain their exact numbers. According to departmental estimates, there are approximately one lakh gig workers in the state. However, the state government currently lacks any dedicated programs to provide social security for these workers.
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