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.
Quick
Shots
•Funded by a 1–5% welfare fee on each
transaction.
•Contributions vary by business type
(e-commerce, food delivery, etc.).
•Additional funding through donations,
transfers, and state govt grants.
•Ensure worker safety, occupational
health, and social security.
As it negotiates with app-based service providers to ascertain the percentage of fees that the platforms must pay, the Karnataka state government intends to operationalise the gig workers’ welfare fund in August.
With a request to issue an ordinance, the government has forwarded to Raj Bhavan the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024. “By the end of August, we hope to put the law into effect,” Labour Minister Santosh Lad stated. In preparation for the creation of draft regulations under the proposed law, his agency is presently consulting with stakeholders.
The regulations will propose varying fees for services including food delivery, ride-hailing, and online shopping. Stakeholder input and government studies will inform the final regulations.
According to the government’s present position, the rate needs to be commensurate with the size of net earnings. Lad clarified that the welfare fee would be determined by service (delivery) charges rather than turnover.
20 Rounds of Meeting Already Conducted
According to the minister, there have been roughly 20 rounds of meetings so far, and all parties are in agreement over the welfare of gig workers. Platforms would be required to pay the fund a charge that ranges from 1% to 5% of the commissions paid to platform and gig workers.
The fee is limited to 5% of the commission by the Social Security Code. Additional Labour Commissioner G. Manjunath stated that the labour department is also investigating the probable effects of the suggested cost on consumers.
An estimated 2.75 lakh gig workers in Bengaluru work in a variety of sectors, such as food delivery, e-commerce, and ride-hailing. After AICC head Rahul Gandhi approved the policy’s general outline last month, the government decided to follow the ordinance route.
Karnataka has hailed its proposed legislation as a rights-based bill that seeks to safeguard the rights of platform and gig workers.
Karnataka to Follow Rajasthan’s Path
After Rajasthan became the first state to enact legislation for platform workers in July 2023, Karnataka developed the bill last year. However, the state has not yet created any regulations.
According to the minister, after the law is put into effect, Karnataka will be the first state to offer social programmes for gig workers. This welfare fund for gig workers is unique to Karnataka state. Additionally, the proposed regulation guarantees that platforms won’t fire employees arbitrarily.
Following Rahul Gandhi’s conversation with Chief Minister Siddaramaiah in Delhi last month, the topic gathered traction. After parts of the delivery, ride-hailing, and e-commerce platforms opposed the move last year, the government soft-pedalled the concept.
Gig employment has revolutionized the Indian economy in recent years, providing a large number of jobs for the population and adding to the country’s GDP in the long run. It is getting so popular that people are actively choosing gig work over regular work due to the convenience and flexibility of the job. Companies that recruit gig workers save money on office space, equipment, and other expenses, while workers enjoy flexible work schedules and the opportunity to do something they like and also earn more by doing multiple gigs.
Gig jobs were already popular before the pandemic, but since the COVID outbreak, many individuals who lost their normal employment have turned to gigs, which are very easy to find and offer an excellent opportunity to make money. More businesses are turning to gig workers in place of full-time staff, and their operational methods are shifting as a result. This allows them to hire more talent but at a lower cost.
Companies that provide gig jobs are expanding in India, and they are assisting a large number of people who are looking for work. We’ll take a look at a few of these businesses in this article.
About Gig Economy and Benefits and Challenges of Gig Workers
Flipkart
Flipkart – Gig Economy Company
Most of the gig workers working at Flipkart are delivery service people. Founded in 2007 by Sachin Bansal and Binny Bansal, the e-commerce giant connects sellers to the consumers and delivers the products to the customers. Flipkart also provides training to its supply chain employees and provides them with all the gear necessary for the job.
Urban Company
Urban Company – Gig Economy Company
Urban Company is an on-demand home service platform that allows consumers to access a variety of services from the comfort of their own homes. Urban Company currently has 35,000+ skilled professionals providing 7,50,000+ services each month, as well as having a worldwide presence in four countries.
Bigbasket
Bigbasket – Gig Economy Company
Founded in 2011, Bigbasket is an online grocery delivery service that brings goods to your home once you place an order. The company employs roughly 35,000 people across 30 Indian cities, a large percentage of which are delivery drivers.
Swiggy is an online food delivery service that brings food right to your door. Founded in 2014, Bangalore-based company that operates in 500+ cities. Swiggy is also known as one of the fastest-growing unicorn companies in India. This delivery business, which employs over 1,30,000 people, makes around 1 million deliveries every day.
Zomato
Zomato – Gig Economy Company
Zomato was launched in 2008 as Foodiebay, and in 2010 it was renamed Zomato Media Pvt Ltd. Deepinder Goyal and Pankaj Chaddah were the founders of the Zomato. The business joined India’s Unicorn club in 2018. It is available in a variety of countries, including the United Arab Emirates, Sri Lanka, Canada, Australia, and the United Kingdom.
Amazon
Amazon – Gig Economy Company
Amazon first entered the Indian market in 2013, and it has since grown to become one of the country’s largest online retail platforms. Amazon has created Flex, which provides part-time delivery work and other Amazon gig jobs in India for workers who want to make extra money. Those who have their own vehicles are eligible to apply for the delivery job, and can earn around Rs.140 per hour.
Dunzo
Dunzo – Gig Economy Company
Kabeer Biswas, Ankur Agarwal, Dalvir Suli, and Mukund Jha established Dunzo in 2014. It’s an online service that delivers necessities and groceries to customers’ homes. The company is headquartered in Bangalore. Jaipur, Gurgaon, Delhi, Chennai, Pune, Bangalore, Mumbai, and Hyderabad are among the eight major cities in India where Dunzo is now active.
PharmEasy
PharmEasy – Gig Economy Company
PharmEasy is an online drug and healthcare supplies delivery service based in Mumbai. The application also provides online doctor consultations and telehealth. PharmEasy app works by taking the customer’s prescription, verifying it at the store, and then delivering the medications as needed. During the pandemic, the company also launched the gift a mask campaign, in which customers were encouraged to donate a mask to frontline employees, with the company matching each donation.
Ola Cabs
Ola – Gig Economy Company
Ola cabs, often known as Ola, is an online taxi and rideshare service that offers consumers rides that can be simply booked online. The company, which is based in Bangalore, provides services in practically all of the country’s main cities. Despite its many issues, Ola continues to have a large user base in the country.
Porter
Porter – Gig Economy Company
The company was founded in 2014 and is active in over 13 cities and has served over 50 lakh customers. The Porter provides transportation aids to the customers, which also helps the owner-drivers with employment and provides them with a consistent source of income. For now, the company has around 2 lakh owner-drivers.
Uber
Uber – Gig Economy Company
Uber began operations in India in 2013, and it has since served over 95 million riders and drivers. It is an online taxi and rideshare company that accepts online reservations for rides. Uber India has supplied gig jobs to a large number of drivers, however the Uber structure in India is very different from that in other developed countries.
Mr. Right is a home service business that offers a variety of services such as appliance repair, deep cleaning, and more. The company accepts orders online and will send a professional with a good track record to the customer’s home to complete the work. The organization employs over 60,000 freelancers and offers a variety of home services.
Blinkit
Blinkit – Gig Economy Company
Blinkit, formerly Grofers, is an online platform for ordering groceries and other necessities. Albinder Dhindsa and Saurabh Kumar founded the company in 2013. The company began operations in Delhi and has since expanded to other cities. The company’s goal is to alleviate the problems and inconveniences that customers and merchants face as a result of the market’s disorganized setup.
Conclusion
Gig jobs are slowly but steadily gaining popularity in India. Because of the pandemic, there has been an increase in gig workers, and some individuals are enjoying it and do not want to return to their former jobs. Gig jobs offer convenience and flexibility. Gig workers make up a major portion of the country’s workforce and contribute significantly to its GDP. It is something that the authorities must address, and actions to protect gig workers and provide them with fair working conditions must still be taken.
FAQs
What is gig work?
Gig workers work as short-term, temporary, or independent contractors for one or more companies, rather than a regular, in-office, full-time position with a single corporation.
How much do gig workers earn in India?
The average salary for gig workers in India is around Rs 12,000 to Rs 16,000.
What is the most popular gig job?
Delivery driver is the most popular gig job.
What is called Gig economy?
Gig economy is a workforce environment for short-term employment, contractual jobs, and independent contractors who do not get monthly wage, isntead they get paid for completing a Gig.
