Karnataka Plans To Launch Gig Fund By August: Report

The Karnataka government is reportedly planning to roll out the gig workers’ welfare fund in August.

This move is part of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, currently awaiting the Governor’s approval as an ordinance.

An Economic Times report mentioned that the rules will propose differential welfare fees for platforms offering services such as ride-hailing, food delivery, and online retail. However, final guidelines will be framed based on government studies and stakeholder feedback.

Earlier reports indicated platforms would contribute between 1% and 5% of the commissions paid to gig workers, with higher rates for high-revenue platforms.

However, Labour Minister Santosh Lad told ET that the welfare fee will be calculated based on service (delivery) charges and not the company turnover.

Additional Labour Commissioner G Manjunath told the publication that the department is also assessing the potential impact of the fee on end consumers.

Although Karnataka came up with the draft Bill last year, there was initial resistance from industry players, which was addressed through multiple stakeholder meetings.

With over 2 Lakh gig workers in Bengaluru alone, Karnataka’s move underscores the urgent need for protections in this fast-growing sector.

In terms of gig workers’ welfare law, Karnataka followed Rajasthan’s lead, which passed the first gig worker welfare law in India in July 2023. Telangana is also considering a similar framework.

Meanwhile, the Centre is ramping up efforts too, mandating gig worker registration on the e-Shram portal in Budget 2025, with 70,000 already enrolled.

Plans are also underway for a nationwide social security and pension scheme, requiring platforms to contribute 2% of each worker’s income.