The Karnataka Legislative Assembly has passed the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, ushering in landmark protections for gig workers in the state. This new law establishes a welfare framework, backed by a fee of 1–5% of gig workers’ payouts, to be collected by aggregators and deposited quarterly into a welfare fund
Key Provisions of the Bill
- Welfare Fund & Board
A dedicated Gig Workers Welfare Fund will be created, managed by a Welfare Board comprising representatives of gig worker associations, aggregator platforms, and civil society - 1–5% Welfare Fee
Aggregators must collect a 1–5% welfare fee from each gig transaction, with exact rates determined later based on aggregator categories via rules to be framed. - Scope of Coverage
The bill covers workers in ride-sharing, delivery, logistics, e-marketplaces (B2B/B2C), healthcare, travel, hospitality, content/media services, and more. - Worker Protections & Grievance Redressal
Gig workers must be registered under the Welfare Board and assigned a unique ID. The law mandates income security, fair working conditions, algorithmic transparency, and protects against arbitrary termination—requiring written notice of at least 14 days. It also establishes a multi-tier grievance mechanism involving internal dispute resolution and appeals to the Board.
Why This Matters
Labour Minister Santosh Lad emphasized the urgency of this legislation, spotlighting the harsh realities gig workers face—long hours, pollution, health hazards, and unstable work. Meanwhile, projections show India’s gig workforce reaching 23.5 million by 2029–30, with Karnataka alone housing over 400,000 gig workers.The Times of India
Quick Overview
| Feature | Details |
|---|---|
| Legislation | Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025 |
| Welfare Fee | 1–5% of gig worker payouts, collected by aggregators |
| Purpose | Social security, health protection, job security, grievance handling |
| Governing Body | Welfare Board with worker, aggregator, and civil society representation |
| Gig Coverage | Ride-sharing, delivery, logistics, e-commerce, healthcare, media, etc. |
| Worker Protection | Registration, income security, fair termination process, algorithmic clarity |
Final Thoughts
The passage of Karnataka’s gig workers welfare bill marks a significant stride in recognizing and safeguarding platform-based labor. By formalizing contributions into a welfare fund and empowering gig workers with rights and redressal mechanisms, the state sets a precedent for inclusive policy in the rapidly expanding gig economy. The real impact will hinge on how effectively aggregator rates are set and governance structures are implemented.
