Summary
Karnataka has passed a law to give platform-based gig workers social security and welfare protection. It sets up a Gig Workers Welfare Board, requires worker and aggregator registration, and places a welfare fee on aggregators.
Karnataka has passed a law to give platform-based gig workers social security and welfare protection. It sets up a Gig Workers Welfare Board, requires registration of workers and aggregators, and places a welfare fee on aggregators. Platforms operating in Karnataka, including Bengaluru, should prepare now.
Who it covers
The law covers gig workers whose work comes through a digital platform, such as ride-sharing, food delivery, and content and media services. An aggregator is the platform that connects customers with these workers.
Key provisions
| Area | What the law provides |
|---|---|
| Welfare Board | A state Gig Workers Welfare Board with government, worker, aggregator and civil society representatives |
| Worker registration | Each worker gets a unique ID valid across platforms; registration within 30 days of onboarding |
| Aggregator registration | Aggregators register with the Board within 45 days of the law's commencement and share worker data |
| Welfare fee | Aggregators pay 1% to 5% of the payout to the worker, rate set by category |
| Payment reporting | Payments and welfare fees reported to a state system |
| Termination | Reasons stated in the contract, with 14 days' prior notice |
| Grievances | Internal dispute committee first, then the Board; appeals within 90 days |
| Penalties | Rs 5,000 to Rs 1 lakh for contraventions; 12% annual interest on unpaid fees |
What platforms should do now
- Map your Karnataka workforce. Know who works through your platform in the state, directly or via fleet partners.
- Get payout data in order. Transaction-level payout data will be needed for fee calculation and reporting.
- Review contracts. Termination reasons, notice periods and the right to refuse tasks need to be clear.
- Set up an internal dispute process. Grievances on payouts and deductions go to your committee first.
- Budget for the welfare fee. Plan for the rate that applies to your category.
Where worker welfare benefits fit
The law focuses on social security through a state fund. Platforms can add their own measures, such as transparent earnings and Earned Wage Access. These address the day-to-day financial stress that a welfare fund does not.
Frequently asked questions
- Does this law apply to logistics and delivery fleet partners?
- It applies to platform-based gig work. Check how your operating model is classified, with legal advice.
- Is the welfare fee deducted from the worker?
- The law describes it as paid by aggregators, calculated on the payout to the worker. Confirm with the notified rules.