Karnataka: Ordinance promulgated for welfare of Gig Workers

Bengaluru: In a move expected to benefit over 30,000 gig workers in the state, the Karnataka government on Tuesday promulgated an ordinance that seeks to create a welfare fund for the social security of gig workers.

The Karnataka Platform-based Gig Workers’ (Social Security and Welfare) Ordinance, 2025, seeks to levy a welfare cess on different aggregator platforms like Swiggy, Zomato, Ola, Uber and so on.

The ordinance had gone to Governor Thaawar Chand Gehlot’s assent on May 22. On Tuesday, the ordinance was approved and notified in the Gazette. The ordinance, along with two others that obtained the Governor's assent, is expected to be passed as a Bill in the upcoming Monsoon Session of the Legislature in July.

Welfare cess

According to the ordinance, a welfare cess in the range of 1-5% of a gig worker’s per-transaction payout will be levied. However, the ordinance has specified that different categories of aggregators will be levied a different percentage of the payout, which will soon be notified.

Alongside the welfare cess, contributions by individual platform-based gig workers, central and state government grants will flow into the welfare fund.

Welfare board

The ordinance also confers powers to the state government to form a welfare board. The board is expected to comprise 16 members, including the Labour Minister, officials from the Labour and IT Departments, four representatives of gig workers, four representatives of aggregators and two members from the civil society.

As per the bill, an aggregator cannot terminate a gig worker from service without a prior notice of 14 days and without providing valid reasons in writing.

The Joint Committee of Trade Unions (JCTU), comprising Central trade unions such as All India Trade Union Congress (AITUC), Centre of Indian Trade Unions (CITU), All India Central Council of Trade Unions (AICCTU) and All India United Trade Union Centre (AIUTUC) has been vociferously arguing in favour of the ordinance for over a year.

Though Labour Minister Santosh Lad was in favour of the draft bill, it reportedly met with friction from some ministers within the Cabinet. Finally, the Cabinet decided in favour of the ordinance after top Congress leader Rahul Gandhi convened an extensive discussion with Lad, Industries Minister M B Patil, IT/BT Minister Priyank Kharge and other representatives of gig workers. On April 11, the Cabinet decided to promulgate it as an ordinance.

The Governor also assented to the Karnataka State Civil Services (Regulation of Transfer of Medical Officers and Other Staff) (Amendment) Ordinance, 2025 and the Karnataka Compulsory Service by Candidates Completed Medical Courses (Amendment) Ordinance, 2025.