Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025

The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025 has been approved by the Karnataka Governor.

Key Details of the Ordinance

• Welfare Fee: Aggregator platforms will have to pay a welfare fee ranging from 1 to 5 percent of every transaction made with a gig worker quarterly. 
• Track and Verify Payments: All transactions involving gig workers will be recorded through a new Payment and Welfare Fee Verification System (PWFVS), overseen by a soon-to-be-formed Karnataka Gig Workers Welfare Board
• Law: The amount will count toward contributions under the Code on Social Security, 2020, with annual reconciliation allowed for any differences.
• The Welfare Fund: A welfare fund will be constituted as a social security system  aimed at supporting lakhs of workers in the platform economy.
• Funding Contributions: The Welfare Fund will be financed by contributions from platforms (welfare fees), workers, and government grants.
• Beneficiaries: The fund will support schemes offering healthcare, income security, maternity benefits, and coverage in cases of old age or disability. 
  • Special provisions are included for women workers and persons with disabilities.
• Registration: All aggregators operating in Karnataka will be required to register with the Karnataka Gig Workers Welfare Board and gig workers will receive a unique ID valid across platforms. 
• Gig Contracts: It must clearly outline payout terms, incentives, and rights, including the right to refuse tasks. 
  • Workers cannot be suspended or terminated without a written explanation and a 14-day notice, except in cases involving violence or bodily harm.
• Timeline for Payments: Dedicated timelines for disbursing payments (daily, weekly, biweekly or monthly) without unjustified delays have been set to ensure fair compensation. Deductions must be transparently stated in invoices.
• Platforms need to disclose how their automated systems make decisions affecting workers. These systems must not discriminate on the basis of gender, caste, religion or other factors.

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