Archive · 4 Oct 2026
Karnataka Gig-Worker Scheme Faces Test as Unions Seek Benefits
Karnataka has a law meant to help people who work through apps.
App companies have been told to pay a fee to support these workers.
Worker unions say the state now needs to turn that money into real help.
They want insurance, income and maternity support, scholarships, emergency aid, and pensions.
The unions say nearly seven lakh gig workers are active in the state.
They also point to problems such as accidents, illness, losing app access, and disruptions caused by climate conditions.
Some platforms and industry groups are challenging the law in court.
The High Court has not stopped the law, but ordered some companies to deposit the fee with the court registry while the case continues.
The main question is when workers will begin receiving benefits.
IFAT and KAWU have asked Karnataka’s gig-worker welfare board to meet urgently and finalise benefit schemes.
The unions seek health and accident insurance, income and maternity support, scholarships, emergency aid, and portable pensions.
Karnataka began requiring platforms to pay a 1% welfare fee in February 2026, with transaction-level caps by service category.
The Karnataka High Court declined to stay the 2025 Act and directed several platforms to deposit the fee with the court registry during proceedings.
The unions cite nearly seven lakh active gig workers and say they face income shocks from accidents, illness, deactivation, and climate-related disruptions.
- Who
- The Indian Federation of App-based Transport Workers (IFAT), the Karnataka App-based Workers Union (KAWU), Karnataka’s gig-worker welfare board, and app platforms.
- What
- Worker unions are seeking an urgent board meeting to finalise and implement social-security benefits for platform workers.
- When
- The unions’ letter was dated October 1, 2026; the article was published October 4, 2026. The welfare fee mechanism began in February 2026.
- Where
- Karnataka, India.
- Why
- The unions want welfare contributions to translate into practical support for workers facing income shocks and other risks.
Unions’ position
Platforms and industry bodies’ position
Use of welfare contributions
Unions’ position
IFAT and KAWU say the collected amounts should be used for workers because there is no stay on the legislation.
Platforms and industry bodies’ position
Platforms and industry bodies have brought legal challenges to the welfare framework; the article does not specify their detailed arguments.
Implementation of benefits
Unions’ position
The unions want the board to finalise and deliver tangible social-security benefits urgently.
Platforms and industry bodies’ position
The article does not report a specific platform or industry-body position on the timing or design of benefits.
- Welfare fee
- Platforms are required to pay a 1% fee on payouts, subject to transaction-level caps by service category.
- Fee mechanism began
- February 2026.
- Governing law
- Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025.
- Benefits sought
- Health and accident insurance; income and maternity support; scholarships; emergency assistance; portable pensions and social-security benefits.
- Estimated active workers
- Nearly seven lakh gig workers in Karnataka, according to the unions.
- Court action
- The Karnataka High Court declined to stay the Act and directed Zomato, Swiggy, Blinkit, and Zepto to deposit the welfare fee with the court registry pending proceedings.
- Board and fund
- The Act provides for a Welfare Board and a dedicated welfare fund.