Karnataka Becomes First Southern State to Pass Gig Workers’ Welfare Bill

In a landmark move for India’s rapidly growing gig economy, the Karnataka Assembly on Tuesday passed the Karnataka Platform-Based Gig Workers’ Social Security and Welfare Bill, a legislation designed to give social security cover and protection to lakhs of gig workers across the state.

From food delivery riders weaving through Bengaluru’s traffic to logistics partners, health service providers, and drivers – the bill promises to bring long-overdue recognition, rights, and safety nets to a section of workers who have, until now, remained largely outside the ambit of formal labour laws.

Gig Workers Bill: Why it matters

The gig economy, once seen as a stop-gap source of income, has now become a livelihood for millions across India. According to a NITI Aayog report, India could see 23.5 million gig workers by 2029-30. Karnataka alone already has around 4 lakh gig workers, working both part-time and full-time across food and grocery delivery, e-commerce, transport, and hospitality.

These workers have long struggled without fixed salaries, health benefits, or protection against arbitrary deactivation by platforms. With this bill, Karnataka has attempted to provide them with basic social security rights – something countries like Spain, Singapore, South Korea, Indonesia, and Malaysia have already moved towards with similar laws.

Key features of the bill

The newly passed bill has several strong provisions:

• Gig Workers’ Welfare Board: A new body that will oversee registrations, frame welfare measures, and act as a bridge between platforms and workers. It will include four worker representatives, along with members from aggregators and civil society.

• Welfare Fund: To be financed through a welfare fee of 1%–5% collected from aggregators, ensuring resources for social benefits.

• Mandatory Registration: Both workers and platforms will have to register with the board.

• Dispute Resolution: A formal mechanism to resolve conflicts and prevent indiscriminate termination of workers.

• Health and Safety: Occupational hazards, particularly faced by two-wheeler riders exposed to long working hours, pollution, and traffic risks, are specifically acknowledged.

Minister’s strong push

Tabling the bill, Labour Minister Santosh Lad made an impassioned case for its urgency.

“Gig workers are those employed by online platforms – food delivery partners, logistics riders, cab drivers, healthcare service providers and more. Today, e-commerce and food delivery are expanding at an unprecedented scale. While this brings opportunity, it also brings risks and insecurities for those powering it. This bill seeks to give them a fair framework,” he said.

Highlighting the dire conditions, Lad cited startling data:

• A gig worker in Bengaluru often needs to work 16–18 hours a day to make around ₹1,600–1,800, completing 25–30 deliveries.

• Pollution exposure is dangerously high. “Permissible CO2 inhalation is 3.5 litres. Gig workers inhale nearly 40 litres daily, apart from carbon monoxide. A 2018 study said auto drivers and gig workers inhale pollution equivalent to smoking 10 cigarettes a day,” he said.

• Long-term exposure, Lad warned, could leave workers with irreversible health consequences.

“This bill,” he stressed, “is a step to secure their future while also balancing the interests of the platforms.”

Support across the aisle

The bill saw rare bipartisan support.

• BJP MLA S. Suresh Kumar recalled initiating discussions on gig workers’ rights back in 2019. He welcomed the move but urged the government to include unorganised outsourcing workers – nearly 3.8 lakh in Karnataka, especially in energy departments – in future provisions.

• Deputy Opposition Leader Arvind Bellad also backed the legislation, pointing out that similar frameworks exist in Bihar and Rajasthan, and that by 2029-30, 2.5 crore Indians (4.1% of the workforce) would be gig workers. “This is not a small number. The government should also look at private sector workers outside gig platforms,” he added.

A step towards dignity for gig workers

For years, gig workers have remained an invisible backbone of India’s urban economy – delivering essentials, ferrying passengers, and keeping businesses running. Yet, they have had no fallback in times of injury, illness, or sudden platform bans.

With this bill, Karnataka has attempted to bring them into the fold of formal recognition and welfare. It is not a perfect solution – questions remain on implementation, funding adequacy, and whether all stakeholders will cooperate. But it sets a precedent for other states and even the Centre to follow.

As Minister Lad said, “The gig economy is no longer a new-age trend – it is here to stay. And if millions are to depend on it, the state must ensure their safety, security, and dignity.”

Karnataka’s move signals a turning point for India’s gig economy. For the first time, delivery partners and platform workers are being recognised not as expendable service providers, but as an integral workforce deserving of protection, rights, and respect.