Karnataka to Launch Gig Workers' Welfare Fund by August End

As it negotiates with app-based service providers to ascertain the percentage of fees that the platforms must pay, the Karnataka state government intends to operationalise the gig workers' welfare fund in August.

With a request to issue an ordinance, the government has forwarded to Raj Bhavan the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024. "By the end of August, we hope to put the law into effect," Labour Minister Santosh Lad stated. In preparation for the creation of draft regulations under the proposed law, his agency is presently consulting with stakeholders.

 The regulations will propose varying fees for services including food delivery, ride-hailing, and online shopping. Stakeholder input and government studies will inform the final regulations.

According to the government's present position, the rate needs to be commensurate with the size of net earnings. Lad clarified that the welfare fee would be determined by service (delivery) charges rather than turnover.

20 Rounds of Meeting Already Conducted

According to the minister, there have been roughly 20 rounds of meetings so far, and all parties are in agreement over the welfare of gig workers. Platforms would be required to pay the fund a charge that ranges from 1% to 5% of the commissions paid to platform and gig workers.

The fee is limited to 5% of the commission by the Social Security Code. Additional Labour Commissioner G. Manjunath stated that the labour department is also investigating the probable effects of the suggested cost on consumers.

 An estimated 2.75 lakh gig workers in Bengaluru work in a variety of sectors, such as food delivery, e-commerce, and ride-hailing. After AICC head Rahul Gandhi approved the policy's general outline last month, the government decided to follow the ordinance route.

 Karnataka has hailed its proposed legislation as a rights-based bill that seeks to safeguard the rights of platform and gig workers.

Karnataka to Follow Rajasthan’s Path

After Rajasthan became the first state to enact legislation for platform workers in July 2023, Karnataka developed the bill last year. However, the state has not yet created any regulations.

According to the minister, after the law is put into effect, Karnataka will be the first state to offer social programmes for gig workers. This welfare fund for gig workers is unique to Karnataka state. Additionally, the proposed regulation guarantees that platforms won't fire employees arbitrarily.

Following Rahul Gandhi's conversation with Chief Minister Siddaramaiah in Delhi last month, the topic gathered traction. After parts of the delivery, ride-hailing, and e-commerce platforms opposed the move last year, the government soft-pedalled the concept.