Karnataka Notifies Gig Workers Welfare Development Board

The Karnataka government has formally constituted the Karnataka Platform-Based Gig Workers Welfare Development Board under the Karnataka Platform-Based Gig Workers (Social Security and Welfare Development) Act, 2025, marking a significant step towards institutionalising social security for gig and platform workers in the State. The notification was issued on Tuesday, operationalising the statutory framework envisaged under the new law.

Composition and structure of the Board

According to the notification, the Labour Minister will serve as the ex-officio President of the Board. Senior officials from the Labour Department, the Department of Information Technology and the Commercial Taxes Department have been included as ex-officio members. The Chief Executive Officer of the Board will act as the Member Secretary, responsible for day-to-day administration and implementation of welfare measures.

Representation of workers and aggregator platforms

The Board includes four representatives of gig workers nominated from unions representing food delivery and app-based transport workers, alongside four representatives from aggregator platforms. Aggregator members include representatives from Porter, Zomato, Uber and Amazon. Labour unions such as the United Food Delivery Partners Union, the Indian Federation of App Based Transport Workers, the All India Trade Union Congress (AITUC), and the Ola Uber Drivers and Owners Association have also been included, ensuring tripartite representation.

Registration and welfare fund mechanism

With the constitution of the Board, both aggregator platforms and gig workers are required to register. Aggregators have been given 45 days to complete registration and submit details of all gig workers engaged through their platforms. Each registered gig worker will be issued a unique identification number to enable the disbursal of social security benefits. The welfare fund will be financed through a combination of welfare fees collected from aggregators, contributions from gig workers, and grants from the State and Central governments.

Important Facts for Exams

• Karnataka is among the first States to create a statutory welfare board for gig workers.
• The Board is constituted under a dedicated State legislation enacted in 2025.
• Gig workers will receive unique identification numbers for benefit delivery.
• Welfare funds can include State, Central and worker contributions.

Welfare fee structure and future review

The State has decided to levy a welfare fee of 1% to 1.5%, with a cap, on aggregator platforms, varying across sectors and business models. Labour Minister Santosh Lad has stated that the levy has been kept modest initially to avoid immediate financial stress on platforms while ensuring steady fund inflow. Officials indicated that the rate could be revised, up to a maximum of 5%, if collections are found inadequate to extend comprehensive social security coverage to gig workers.