Karnataka Sets Up Gig Workers’ Welfare Board, Platforms To Pay Social Security Fee

Amid the ongoing face-off between gig workers and consumer platforms, the Karnataka government has constituted a Gig Workers’ Welfare Board to provide social security to gig workers operating in the state. The move follows the enactment of the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, under which the Board will serve as the primary authority responsible for rolling out welfare schemes, managing funds and overseeing compliance by digital platforms. The welfare board will have 16 members, including representatives from the state government, gig worker unions, aggregator companies and subject-matter experts from fields such as labour policy, technology and data systems. The state’s labour minister will chair the board. One of the most significant provisions under the framework is the introduction of a mandatory welfare fee for aggregators. All digital platforms operating in Karnataka will be required to register with the Board and contribute around 1% to 1.5% of the payments made to gig workers towards a dedicated welfare fund. The contribution will not be deducted from workers’ earnings and is intended to finance social security benefits.The move will likely strain the finances of quick commerce platforms like Blinkit, Swiggy Instamart, and Zepto. Meanwhile, gig workers will need…  ​Read MoreInc42 Media