Ordinance Promulgated for Welfare of Gig Workers

It aims to set up welfare board and create a dedicated fund

- EXPRESS NEWS SERVICE @ Bengaluru

The State Government on Tuesday promulgated an ordinance to protect the rights of platform-based gig workers.

The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, approved by the Governor and published in the Karnataka Gazette Extraordinary on Tuesday aims to create a welfare fund for gig workers and places obligations on aggregator or platform in relation to social security, occupational health, and safety. A welfare board headed by the labour minister will be established and gig workers and aggregators or platforms in Karnataka will be registered.

The ordinance proposes a "platform-based gig workers welfare fee" from aggregators. The fee will be between 1 to 5% of the payout to the gig worker in each transaction, as may be notified by the State Government within six months of the ordinance coming into force.

"The State Government shall specify through a notification different percentage on the payout, with or without a cap on the gig worker welfare fee on each transaction, for different categories of aggregator or platform," the ordinance read.

The aggregator or platform shall deposit the welfare fee levied under this ordinance, at the end of each quarter.

It proposes a Payment and Welfare Fee Verification System (PWFVS). All payments made to workers generated on the platform shall be mapped onto PWFVS administered by the State Government and monitored by the Board.