Karnataka Assembly Passes Gig Workers’ Welfare Bill to Boost Social Security for Platform Employees

According to reports, the Karnataka legislative assembly passed a bill that will open the door for the establishment of a gig worker welfare fund. The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, seeks to create a welfare board and safeguard workers’ rights, according to news agency PTI.

Additionally, it imposes new duties on aggregators concerning the safety, occupational health, and social security of their employees. According to reports, state labour minister Santosh Lad stated during his speech in the parliament that the bill suggests a welfare cost of 1% to 5% for every transaction, which will be subtracted from the worker’s compensation. The cost will fluctuate depending on the type of aggregator.

Welfare Fund and Aggregator Contributions

These revenues will be combined to create the welfare fund, which will also receive gifts, donations, transfers, and grants-in-aid from the state government. A welfare fee of 1% to 5% of a gig worker’s compensation will be collected, Lad added. This cannot be applied universally because e-commerce and the operations of Swiggy and Zomato are not the same.

They are various business types. Therefore, 1-5% will not be applied uniformly to all. “While establishing the regulations, we shall debate and make a decision,” Lad added further. According to the report, the bill will also require gig workers to register with the planned welfare board and provide for openness in dispute settlement procedures.

Rights and Protections for Gig Workers

The Hindu claims that the board will also decide on worker safety measures, health card issuance, and other social security matters. Furthermore, the bill allegedly places the responsibility for offering gig workers stable incomes and decent working conditions on app-based platforms. According to PTI, Lad cited the Bill and stated that a gig worker cannot be fired without giving 14 days’ notice and a written justification.

Background and Ordinance History

This comes four months after intentions to create a gig worker welfare board were revealed by the Karnataka chief minister’s office. The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, was subsequently issued by the state government in May.

Since the issue was deemed “urgent” since neither chamber of the state legislature was in session, Governor Thaawarchand Gehlot introduced and approved the ordinance. It is important to remember that the state administration published a draft of the same measure last year, which included provisions for income and social security as well as other advantages.