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Karnataka cabinet on April 11 approved the Platform Based Gig Workers (Social Security and Welfare) Bill, aiming to provide social security benefits for gig economy workers across the state. The bill proposes a cess of 1–5% on major digital aggregator platforms like Amazon, Flipkart, Ola, and Uber to build a dedicated welfare fund.
Ordinance to Enforce Bill Soon
The state government plans to use the ordinance route to implement the bill. Karnataka’s Law and Parliamentary Affairs Minister HK Patil confirmed to the media that the ordinance will be introduced shortly to bring the bill into force without delay.
This decision comes after Chief Minister Siddaramaiah held discussions in Delhi with Congress leader Rahul Gandhi, following earlier disagreements within the cabinet that had temporarily delayed the bill’s passage.
Mixed Reactions from Stakeholders
The move has been welcomed by gig workers and labour unions, who see it as a long-awaited step toward securing social security benefits in a growing gig economy. However, industry associations such as NASSCOM (National Association of Software and Service Companies) and IAMAI (Internet and Mobile Association of India) have expressed concern.
According to these industry bodies, the new cess and certain provisions in the bill may negatively affect aggregator businesses and reduce Karnataka’s appeal as a business-friendly state.
Background and Significance
The bill is a response to the rising number of platform-based gig workers, who currently lack access to formal welfare measures such as health insurance, pensions, or income protection. The proposed fund aims to fill that gap and ensure minimum social security for delivery personnel, drivers, and others working on app-based platforms.
What’s Next?
Once the ordinance is issued, Karnataka will become one of the first Indian states to implement a dedicated welfare scheme for gig workers through mandatory contributions from digital platforms. More details regarding the operational structure of the fund and eligibility rules are expected to be released after the ordinance is notified.
