Rate Card For Domestic Workers? Karnataka Introduces Minimum Wage Protection For Daily Domestic Helpers

Karnataka is set to introduce a rate card to determine fair wages for domestic workers across the state. The initiative, part of the Domestic Workers (Social Security and Welfare) Bill, aims to ensure minimum wage protection, social security coverage, and welfare benefits for workers in urban areas.

A five per cent welfare fee will also be levied if the Bill passes. Currently, domestic worker salaries vary widely across cities and rural regions, often leaving many workers underpaid and unprotected. The government plans to monitor and update the rate card regularly.

Domestic Workers to Receive Fair Pay Based on Tasks and Hours

Under the new Bill, domestic worker wages will align with the number of hours worked and the specific tasks undertaken. Each chore will have an assigned value, determining the worker’s salary, a senior government source explained.

Karnataka Labour Minister Santosh Lad told News18 that the legislation will address unfair pay practices and ensure that domestic workers receive their due compensation. Officials also highlighted the need for checks on domestic help in households, particularly as senior citizens increasingly employ aides. The framework will create a transparent system for wages and welfare benefits.

Mandatory Registration and Welfare Board to Oversee Implementation

The draft Bill mandates registration for all domestic workers, including maids, cooks, drivers, and nannies, along with their employers and service providers. It proposes the creation of a Karnataka State Domestic Workers Social Security and Welfare Board to implement schemes, manage funds, and address grievances. The board will have equal representation from government officials, domestic workers and unions, employers, service providers, and resident welfare associations. Registration will help track the workforce, provide medical or other assistance, and maintain a verified data bank to support workers efficiently.

Welfare Fee to Fund Social Security and Compensation Schemes

The Bill introduces a welfare fee, requiring employers and service providers to contribute up to five per cent of the domestic worker’s salary. Payments will be made digitally into the welfare fund, with quarterly or semi-annual submissions. Employers must submit annual wage calculation statements via a digital portal. If discrepancies arise between the fee paid and reported wages, penalties will apply. The fund will provide benefits such as compensation for workplace injuries, medical expenses, pensions, education support, and funeral assistance, ensuring financial protection for domestic workers.

This Bill follows Karnataka’s earlier rollout of the Gig Workers Social Security and Welfare Bill, 2024, and the Cine and Cultural Activists Welfare Bill, 2024, both establishing dedicated funds for worker benefits. Minister Santosh Lad emphasized the importance of protecting domestic workers and providing them with a rights-based framework. By introducing a rate card, welfare fund, and mandatory registration, Karnataka aims to formalize domestic work and safeguard the interests of both workers and employers. The Bill is expected to be presented to the state cabinet within the next two weeks.

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