The bill proposes a welfare fee of between 1 and 5 percent on aggregators, to be directed into a dedicated fund for gig workers.
Published Aug 19, 2025 | 9:43 PM ⚊ Updated Aug 19, 2025 | 9:43 PM
Gig workers. (Representational/ iStock)
Synopsis: The Karnataka Legislative Assembly has passed the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, providing legal protection and welfare provisions to lakhs of gig economy workers. The law mandates the creation of a welfare board with representatives from government, workers, platforms, and civil society, and proposes a 1–5 percent welfare fee on aggregators to fund social security schemes.
The Karnataka Legislative Assembly has passed the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, extending legal protection and welfare provisions to lakhs of workers in the gig economy.
The Bill provides for the creation of a welfare board comprising representatives from the government, workers, platforms, civil society, and subject experts. It will include four worker representatives, four platform representatives, and two civil society experts to ensure balanced decision-making. The board will be responsible for managing welfare schemes, ensuring compliance, and making policy recommendations.
The legislation proposes a welfare fee of between 1 and 5 percent on aggregators, to be directed into a dedicated fund for gig workers.
“The fee cannot be implemented uniformly (from all aggregators). When rules are framed, the government will also determine the welfare fee,” Labour Minister Santosh Lad said during the debate.
The law will cover eight categories of services provided through digital platforms: ride sharing, food and grocery delivery, logistics, e-marketplaces, professional services, healthcare, travel and hospitality, and content and media services.
Explaining the definition of gig workers, Lad said: “Under Section 2E, the definition of a gig worker is a person who performs work or participates in a work arrangement that results in payment at a given rate, as per the terms of a contract, and whose work is sourced through a platform in the services specified in the schedule. Those who conduct transactions through these platforms are called gig workers.”
The Bill comes amid the rapid growth of the gig economy, with workers engaged in ride sharing, delivery, e-commerce, and home-based services. Unlike traditional employees, these workers do not have a fixed employer and therefore lack structured social security protections.
According to government estimates, nearly four lakh people currently work as gig workers in Karnataka. “Some work full-time while there are others who work half-time as well,” Lad noted.
Highlighting future trends, Lad said: “According to a NITI Aayog report, by 2029-30, about 23.5 million workers will be employed as gig workers, creating many opportunities in this sector.”
Lad drew attention to the health challenges faced by workers, how many of them worked 16 to 18 hours a day to earn between ₹1,600 and ₹1,800, completing up to 30 delivery tasks daily in cities like Bengaluru.
“The permissible CO2 exposure limit is 3.5 litres, but gig workers inhale nearly 40 litres, as per my information. They also consume significant amounts of carbon monoxide,” he said.
“Even though he does not smoke, he is consuming 10 cigarettes a day… If a person who is working for 20 years in this industry, his future will be in jeopardy,” Lad added, stressing that the Bill was necessary to safeguard the social security and well-being of platform-based workers.
The minister noted that several countries had enacted similar laws.
“Other countries have enacted similar laws: Spain has the Riders’ Law, Singapore has the Platform Workers’ Law, and such laws are also in place in Korea, Indonesia, and Malaysia. This bill is being presented on the same lines to bring gig workers under a legal framework,” he said.
(Edited by Dese Gowda)
