45 lakh unorganised workers in Karnataka may get social security benefits

The Karnataka government is planning to extend job-related securities to over 45 lakh app-based transport and food delivery workers and others in the unorganised sector. The government is aiming to reduce socio-economic vulnerability by providing access to health, education, and welfare schemes. 

Labour Minister Santosh Lad announced the decision while talking to reporters at the Vidhana Soudha.

About 40 lakh people are employed in the transport industry in the private sector, including drivers, conductors, cleaners and mechanics. With many taking up gig work on apps like Ola and Uber, these 40 lakh people have no job-based social security benefits. The government plans to extend them benefits to increase access to health, education and improve financial risk mitigation measures.

Lad said the government was also aiming to extend benefits to gig workers in the private transport industry by utilising the 5% cess charged to new vehicle buyers. 

About four lakh people are involved in the gig economy for apps like Swiggy and Zomato that provide home delivery services. There are over 20,000 workers in the cinema industry, who are also highly vulnerable due to the informal nature of the sector. 

With regard to the expenditure incurred, the minister explained that the employing companies will be compelled to pay cess to institute a provident fund. Government funds will also be combined with the collected amount.

A per cent of the cost of a movie ticket would be set aside to provide security to workers in the cinema industry. The government estimates that five crore movie tickets are sold each year.

The government also put forward a proposal to build a hi-tech hospital with 50 beds in different parts of the state for the workers. A request has been submitted to the Union government, the minister added.

Currently, workers who visit the ESI hospitals are often referred to private hospitals, increasing the health expenditure. If ESI hospitals are supplied with sufficient infrastructure and equipment, the situation will improve, he said.

The minister also expressed concerns about the significant increase in the number of people who have sought labour cards in the state. Lad said 44 lakh people have received labour cards. Around 12 lakh people have applied now.