Archive · 29 May 2025
Karnataka's Gig Worker Welfare Plan May Increase Costs
Karnataka is creating a welfare fund for gig workers, who do things like deliver food or drive cabs.
They plan to collect money from consumers, platforms like Uber, and the workers themselves.
This means prices for services might go up.
Experts are worried about how this will work, especially if worker wages aren't protected.
They also point out that some platforms aren't open to negotiating with workers.
While some companies support it, it's not clear yet how all the rules will be enforced.
It's a new step that acknowledges the importance of these workers, but there are challenges to be addressed.
Karnataka plans a welfare fund for gig workers funded by consumers, platforms, and workers.
A 1%-5% cess is proposed to fund the welfare initiatives.
Implementation details, particularly regarding wage protection, are yet to be finalized.
Experts raise concerns over potential cost increases for consumers and the balance of stakeholder involvement.
Some platforms welcome the ordinance as a step towards acknowledging gig workers' importance.
- Who
- Karnataka government, gig workers, consumers, and digital platforms.
- What
- An ordinance introducing a 1%-5% cess to fund social security for gig workers.
- When
- The ordinance is proposed for 2025.
- Where
- Karnataka.
- Why
- To create a welfare fund and provide social security for gig workers.
Concerns
Support
Wage Protection
Concerns
Some experts express concern over the lack of guaranteed wages and potential reduction of per-task payments to offset the cess.
Support
The ordinance aims to create a welfare fund.
Stakeholder Engagement
Concerns
Some platforms are not open to negotiating with worker collectives.
Support
Some platforms responded positively.
- Ordinance Name
- Karnataka Platform-based Gig Workers' (Social Security and Welfare) Ordinance, 2025
- Cess Rate
- 1%-5%
- Stakeholders
- Consumers, digital platforms, and gig workers
- Estimated Gig Workers
- 30,000
- Estimated Annual Corpus
- Rs 150 crore