Karnataka passes bill to provide social security for gig workers, mandates welfare fee on aggregators

The Welfare Board will frame the rules and determine the welfare fee.
“To earn Rs 1,800 a day, they work 16 hours on 25 to 30 gigs (works), and spend most of their time in traffic. This bill is for their welfare,’’ Labour Minister Santosh Lad said.
“To earn Rs 1,800 a day, they work 16 hours on 25 to 30 gigs (works), and spend most of their time in traffic. This bill is for their welfare,’’ Labour Minister Santosh Lad said. Photo | Express Illustration
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BENGALURU: In order to provide social security to gig workers who spend most of their working hours on roads, prone to health hazards, the Karnataka Assembly passed the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2025, on Tuesday. It allows the government to levy a welfare fee of 1 to 5% on aggregators. The Welfare Board will frame the rules and determine the welfare fee.

According to Labour Minister Santosh Lad, this is expected to help over 4 lakh gig workers in the state. He said the fee will be based on services of the aggregators as they cannot prescribe uniform welfare fee for all.

The bill is applicable to those who work with digital platforms to provide services like ride sharing, food and grocery delivery, logistics, e-marketplace for wholesale/retail sale of goods, business to business, business to consumer, professional activity provider, healthcare, travel and hospitality, content and media services and many more to be added in the coming days.

Lad said most of the gig workers ride two-wheelers and are exposed to pollution. “To earn Rs 1,800 a day, they work 16 hours on 25 to 30 gigs (works), and spend most of their time in traffic. This bill is for their welfare,’’ he said.

Job security a major concern

Gig workers consume 40 litres of carbon dioxide, while the permissible limit per person is 3.5 litre. They also consume carbon monoxide and inhale air pollution which is equal to 10 cigarettes a day. Those who work for 20 years in this line severely compromise their health, the minister said. As per a NITI Aayog report, India will have 23.5 million gig workers by 2029-30. At present, there are over 4 lakh workers in Karnataka. Other countries have laws for gig workers, he added.

The minister said the Karnataka Insurance Scheme announced in the 2023-24 budget which provides accident benefit of Rs 2 lakh and health insurance of Rs 2 lakh, covers gig workers.

Gig workers had always faced the issue of job security as aggregators would throw them out overnight. “We have insisted on a fair mechanism to be followed. After every job, data on money collected or paid to the worker, has to be given to the Board. The labour department has to create software to monitor payments,” he added.

BENEFITS OF BILL

  • Provides dispute resolution mechanism

  • Establishes Gig Workers’ Welfare Board

  • Creates welfare fund for platform-based gig workers

  • Provides for registration of workers, aggregators or platforms

  • Provides income security, reasonable working conditions to workers

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