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Karnataka Government to Create a Welfare Fund for Platform based Gig Workers

CIO Insider Team | Thursday, 29 May, 2025
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The Karnataka Government enacted the Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025 to safeguard the rights of gig workers reliant on platforms, impose responsibilities on platforms regarding social security, occupational health and safety, ensure transparency in automated monitoring and decision-making processes, implement dispute resolution mechanisms, establish a Welfare Board, and create a welfare fund for platform-based gig workers, along with registering both gig workers and platforms in the State.

The Ordinance path was selected because the Karnataka Legislative Assembly and the Karnataka Legislative Council are currently not convening, and the Governor of Karnataka believes the situation warrants his prompt action to issue the Ordinance.

The Ordinance is relevant to (i) any aggregator or platform that operates or offers one or more services listed in the Schedule under the Ordinance within the State of Karnataka, as updated by the Government periodically, (ii) all platforms, and (iii) all gig workers registered with the Board.

According to the Ordinance, “Aggregator” refers to a digital intermediary that connects a buyer of goods or user of a service with the seller or service provider, and encompasses any organization that collaborates with one or multiple aggregators to deliver the services.

Gig worker refers to an individual who carries out tasks or engages in a work arrangement that leads to a specific payment rate, based on the conditions outlined in the contract

“Platform” refers to any system that delivers a service electronically upon request by the service recipient, which organizes tasks carried out by individuals at a specific site in exchange for payment, and features automated monitoring and decision-making systems or human decisions based on data.

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Gig worker refers to an individual who carries out tasks or engages in a work arrangement that leads to a specific payment rate, based on the conditions outlined in the contract, encompassing all piece-rate labor, and whose work is accessed via a platform, for the services listed in the Schedule.



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