karnataka-to-set-up-welfare-board-for-gig-workers

The Karnataka government has announced the formation of a Gig Workers Welfare Board to ensure the social security of gig workers in the state. 

The decision was made following a high-level meeting attended by Chief Minister Siddaramaiah, Labour Minister Santosh Lad, IT Minister Priyank Kharge, Commerce and Industries Minister MB Patil, and Leader of Opposition Rahul Gandhi. 

Three gig worker representatives—Rakshitha Dev from Karnataka, Sheikh Salahuddin, and Nikhil Dev from Hyderabad—were also present to discuss the pressing concerns faced by workers in the gig economy.

Minister MB Patil highlighted that the Gig Workers Social Security and Welfare Bill, 2024, is a crucial initiative designed to protect gig workers. He emphasized that the state government has carefully examined the advantages and challenges of setting up this welfare board and is committed to implementing it soon. 

To fund the welfare initiatives, the government has proposed a 5% cess on companies and aggregators, although Patil clarified that extensive consultations will be held with stakeholders before finalizing the rate. 

If deemed feasible, the cess may be reduced by 1%. Additionally, the state government will contribute funds to ensure the effective implementation of welfare schemes for gig workers.

The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Draft Bill outlines the structure and functions of the welfare board, which will include key government officials such as the Minister-in-charge of the Labour Department, Additional Secretary, Chief Secretary or a nominee at the rank of Joint Secretary, Additional Chief Secretary of the IT Department, Commissioner of Commercial Taxes, and a CEO appointed by the state government. 

The board will also feature two gig worker representatives, two aggregator representatives, and one civil society representative with relevant expertise, with nominated members serving a three-year term, extendable by one year at the state government’s discretion.

The board will be responsible for registering gig workers and aggregators, overseeing the collection and utilisation of welfare funds, ensuring the implementation of social security schemes, providing recommendations to the government, and engaging with gig worker associations to develop inclusive policies. 

It will also focus on reviewing welfare measures for women and persons with disabilities and will have the authority to request data from aggregators to assess their contributions toward worker welfare.

The Karnataka Labour Department has previously introduced key legislative measures to support unorganised sector workers, including laws on workers’ gratuity and cinema workers’ rights. 

The formation of the Gig Workers Welfare Board represents another progressive step in extending protections to gig economy workers, who are an essential part of the state’s workforce, particularly in sectors like food delivery, ride-hailing services, and e-commerce. The draft bill will soon be presented before the state cabinet for final approval, setting the stage for its formal implementation.