The functions of the board include registering gig workers and aggregators, ensuring regular welfare fee collection, overseeing the implementation of social security schemes, monitoring workers' social security, and recommending scheme administration to the government
Published Apr 03, 2025 | 9:10 PM ⚊ Updated Apr 03, 2025 | 9:10 PM
Gig workers. (Representational/ iStock)
Synopsis: Karnataka Chief Minister Siddaramaiah, along with key ministers, announced the creation of a Gig Workers Welfare Board after a meeting with Rahul Gandhi. The decision aims to ensure better welfare for gig workers. The state will introduce the Gig Workers Social Security and Welfare Bill, 2024, with a focus on social security. A 5 percent cess on companies is under consideration, but the government seeks to minimise its impact
In order to ensure the well-being of gig workers in the state, Karnataka Chief Minister Siddaramaiah along with Santosh Lad, Minister of Labour, Priyank Kharge, Minister for IT and MB Patil, Minister for Commerce and Industries arrived at a decision to set up the Gig Workers Welfare Board. The decision was taken after a meeting with Leader of Opposition Rahul Gandhi.
Apart from the ministers, three gig worker representatives including Rakshitha Dev (Karnataka), Sheikh Salahuddin (Hyderabad), and Nikhil Dev were also part of the meeting.
Speaking to South First, MB Patil, Minister for Commerce and Industries, said, ‘The Gig Workers Social Security and Welfare Bill, 2024 is one of a kind. The decision of setting up a welfare board for gig workers is taken in the interest of gig workers in the right direction by the state government. We will set it up soon, we have discussed on the pros and cons of setting up this welfare board.”
When asked if the government collecting 5 percent cess from companies will lead to increasing the prices on services by online aggregators, Patil said, “Every stake holder will be taken into confidence before imposing the cess. We will also hold a meeting with the companies or aggregators and try to reduce the cess by 1 percent or so. But all this is being done in the interest of the workers. Even the government will provide funds for the schemes that will be implemented for gig workers. A comprehensive bill covering all aspects of gig workers’ welfare will be prepared and presented before the state cabinet for approval.”
The government has adopted funding mechanism for the welfare board. Therefore, 5 percent cess will be collected from the companies or aggregators, while the remaining required funds will be provided by the state government to support welfare schemes for gig workers.
The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Draft Bill outlines the structure of the welfare board. It will include the Minister-in-charge of the Labour Department, the Additional Secretary, the Chief Secretary or Secretary to the Government (Labour Department), or a nominee at the rank of Joint Secretary, the Additional Chief Secretary of the Information and Technology Department, the Commissioner of Commercial Taxes, and a CEO appointed by the state government to oversee daily operations. Additionally, two gig worker representatives, two aggregator representatives, and one civil society representative with relevant experience will be nominated by the state government.
The nominated members of the board shall be there for a term of three years, provided that the state government may extend their term for one more year.
The functions include registration of gig workers, registration of aggregators, monitoring mechanism to be set up to ensure welfare fee is collected regularly, ensure implementation of general and social security schemes by the government, monitoring the social security of gig workers and make recommendation to the government to administer such schemes.
In addition to this, the board has to meet the association of gig workers, form, implement and review for gig workers of specific categories like women, person with disabilities etc. The board can also seek data from the aggregators to know the work done by them for gig workers.
Earlier, Karnataka Labour Department had already introduced three key bills that are in the interest of unorganised workers. It covers workers’ gratuity, cinema workers’ rights, and now, gig workers’ welfare.
(Edited by Ananya Rao)
