Karnataka might soon roll out a new law to support gig workers—the thousands delivering food, ferrying people, and doing odd jobs across platforms like Amazon, Flipkart, Ola, and Uber.
The state government is working on introducing the Gig Workers’ Welfare Act, which is expected to include a dedicated welfare board and a funding system partly supported by a 5% cess on these major companies.
The move comes as part of the Congress party’s pre-election promises and was first floated during the 2023 Assembly polls and the 2024 Lok Sabha campaign. But despite the momentum, the process has seen a few bumps along the way.
In a recent development, a delegation led by Chief Minister Siddaramaiah met with Congress leader Rahul Gandhi at his Delhi residence. The group included Labour Minister Santhosh Lad, IT Minister Priyank Kharge, and Industries Minister MB Patil. Sources suggest the meeting focused on ironing out the framework of the proposed law.
This isn’t coming out of the blue. The promise was part of the Bharat Jodo Yatra narrative and has since remained on the party’s radar. According to Labour Minister Lad, the government is now planning to present the bill to the cabinet and possibly push it through via an ordinance.
At the heart of the proposal is a Gig Workers’ Welfare Board—something similar to the existing welfare board for construction workers. If set up, it would look after the interests of gig workers and ensure they have access to welfare schemes, insurance, and other benefits that traditional employees typically get.
To pay for all this, the plan includes a 5% cess on companies that rely heavily on gig labour. This would be on top of what the state government chips in. While this sounds straightforward on paper, it may not be smooth sailing.
The first draft of the bill was released back in July 2024, and there were plans to table it during the monsoon session in Belagavi. But those plans were shelved after industry groups raised objections to certain clauses. They reportedly asked for more time to provide feedback—particularly around the cess and the potential impact on business operations.
What happens next depends on how these negotiations pan out. While the government seems keen to move quickly—possibly even before the next legislative session—it remains to be seen how much the bill might change before it becomes law.
India’s gig economy has exploded in recent years. From delivering groceries to driving cabs, gig workers are now a crucial part of urban life. But they often lack basic protections like health cover, accident insurance, or pensions.
Karnataka’s move could set a precedent for other states, or even spark a national conversation on how gig workers should be treated. Still, it all depends on how the final bill shapes up—and whether companies and lawmakers can agree on who pays for what.
