Karnataka To Ensure Gig Workers Bill Benefits All Stakeholders: Priyank Kharge

Karnataka’s Total Funding Support To Startups Stands At INR 264 Cr

SUMMARY

Minister Priyank Kharge announced the gig workers bill is ready and welcomed by industry leaders during the Bengaluru Tech Summit 2024 curtain raiser.

Kharge promises a thorough review and possible further consultations to address industry concerns about dual taxation and data-sharing requirements raised by IAMAI.

The curtain raiser for the summit was attended by 200 tech CEOs who introduced new initiatives like an Electro-Semicon track and a GovTech hackathon, with participation expected from over 40 countries.

The Karnataka government is working to ensure that its proposed bill on platform-based gig workers benefits all stakeholders, IT & BT, Rural Development and Panchayati Raj minister Priyank Kharge said.

Addressing the curtain raiser of the Bengaluru Tech Summit 2024 today (July 12), Kharge said, “The gig workers bill is ready and is welcomed by industry leaders. In framing the rules and benefits for gig workers, we are giving stakeholders 15 more days to provide inputs.”

“The Minister of Labour and Employment and a few companies who weren’t consulted before the bill was drafted will now have time to share their perspectives. As of now, there is no opposition to the bill,” the minister added.

The draft Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, released last month, proposes various welfare measures for gig workers. It requires app-based platforms like Swiggy, Zomato, Ola, and Uber to provide social security benefits to workers.

Meanwhile, IAMAI has raised concerns that certain provisions could negatively impact ease of doing business in the state. It highlighted risks of dual taxation in social security contributions at state and central levels, ambiguity in the welfare fund’s utilisation, onerous data sharing requirements for platforms, and disadvantages for online businesses compared to offline counterparts.

Kharge said, “We will do a deep dive and ensure the bill is a win-win for all.”

He further added that the Karnataka government is planning wider consultations with Labour Minister Santosh Lad and may provide a 10-day window for further industry feedback.

The bill proposes a fee on each online transaction to fund the social security and welfare initiatives. It also requires all gig workers and aggregators to register with the labour department.

If passed, Karnataka would become the second state after Rajasthan to enact legislation for platform-based gig workers. The Congress party had promised a Gig Workers Welfare Board and minimum hourly wages in its election manifesto.

At the event, attended by over 200 tech company CEOs, Karnataka Chief Minister Siddaramaiah and Deputy CM DK Shivakumar presented an ‘Action Taken Report’ addressing industry feedback from the previous summit. They agreed to further discussions to facilitate broad-based consultations on the gig workers bill.

BTS 2024, themed ‘Technology Unbound’, expects participation from over 40 countries, 460+ speakers, 5000+ delegates, 500+ startups and 700+ exhibitors. New initiatives this year include an Electro-Semicon track, a GovTech hackathon, and an event app to enable seamless networking and B2B meetings.