Can Karnataka’s New Board Redefine Gig Worker Protection in India?

The Karnataka government has officially moved to protect gig and platform workers by notifying a dedicated welfare board. The decision brings a long-discussed law into action and creates a formal system for social security in the gig economy. With app-based work expanding rapidly, the move is being seen as a milestone for labour reforms. The board will oversee registration, welfare funds and benefit delivery, aiming to give gig workers identity, security and institutional support in a fast-changing employment landscape.

Why in News?

Karnataka has notified a statutory Gig Workers Welfare Development Board. The move operationalises a new law passed in 2025 for gig worker social security.

What Is the Gig Workers Welfare Board

• The Karnataka government has constituted the Karnataka Platform-Based Gig Workers Welfare Development Board under the Karnataka Platform-Based Gig Workers (Social Security and Welfare Development) Act, 2025.
• This marks a shift from policy intent to actual implementation.
• The board is meant to institutionalise welfare for app-based and platform workers. It will design, manage and monitor social security schemes.
• Karnataka is among the first states to create such a statutory body, setting a possible template for other states to follow.

Composition and Structure of the Board

• The board follows a structured administrative model.
• The Labour Minister of Karnataka will act as the ex-officio President. Senior officials from the Labour Department, IT Department and Commercial Taxes Department are included as members.
• A Chief Executive Officer will function as the Member Secretary and handle daily operations. This structure ensures policy oversight as well as administrative continuity.
• By combining political leadership and senior bureaucracy, the state aims to ensure smooth coordination and timely execution of welfare measures.

Representation of Workers and Platforms

• The board follows a tripartite representation model. Four members represent gig workers, nominated from recognised unions of food delivery and app-based transport workers.
• Four representatives come from aggregator platforms such as Zomato, Uber, Porter and Amazon.
• Labour unions including AITUC and platform worker associations are also represented.
• This balanced structure is designed to bring workers, platforms and the government onto one table for dialogue and decision-making.

Registration and Welfare Fund Mechanism

• With the board in place, both aggregators and gig workers must register. Aggregator platforms have been given 45 days to submit details of workers engaged through them.
• Each registered worker will receive a unique identification number. This ID will be used to deliver social security benefits.
• The welfare fund will be built through welfare fees collected from platforms, contributions from workers, and grants from State and Central governments. The system aims to ensure transparency and traceability in benefit delivery.

Welfare Fee and Future Review

• Karnataka has decided to levy a welfare fee of 1% to 1.5% on aggregator platforms, with a sector-wise cap.
• Labour Minister Santosh Lad has said the rate is deliberately modest to avoid sudden financial pressure on platforms.
• However, the law allows the fee to be increased up to 5% if collections are found insufficient.
• Officials have indicated that the rate will be reviewed periodically, depending on fund adequacy and the scope of benefits to be provided to gig workers.

Key Summary at a Glance

Question

Q. The Karnataka Gig Workers Welfare Development Board has been created under which law?

A. Industrial Disputes Act, 1947
B. Code on Social Security, 2020
C. Karnataka Platform-Based Gig Workers Act, 2025
D. Factories Act, 1948