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Karnataka Notifies Gig Workers’ Welfare Board, Sets Levy on Aggregator Platforms

The Board’s mandate is to extend social security and welfare benefits to gig workers across Karnataka.

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The Karnataka government has officially notified the constitution of the Karnataka Platform-Based Gig Workers Welfare Development Board. The notification, issued on 27 January 2026, establishes the Board under the Karnataka Platform-Based Gig Workers (Social Security and Welfare Development) Act, 2025.

The Board will oversee the implementation of welfare measures for gig workers, including the collection of a welfare fee from aggregator platforms and the registration of both aggregators and gig workers within a specified timeframe.

According to The Hindu, the Labour Minister will serve as the ex-officio President of the Board, with senior officials from the Labour, Information Technology, and Commercial Taxes Departments included as ex-officio members. The Board also comprises four representatives each from gig worker unions and aggregator platforms, as well as a Chief Executive Officer who will act as the Member Secretary.

As reported by Deccan Herald, the Board is structured to include a total of 16 members. This includes five government representatives, four from gig worker unions, four from aggregators, two experts on the gig economy, and one technical expert in data storage and information technology. Both aggregators and gig workers are required to register with the Board, and aggregators must submit data on all registered gig workers within 45 days.

The Board will implement a welfare fee ranging from 1% to 1.5% on aggregator platforms, with the rate varying by sector and business model as outlined by officials. The fee is designed to ensure a steady welfare fund for gig workers without imposing an immediate financial burden on platforms. If the collected funds are found insufficient, the Board may revise the welfare fee up to a maximum of 5%.

Each gig worker will be assigned a unique identification number, which will be used to disburse social security benefits. Further details indicate that the welfare fund will be composed of contributions from aggregators, gig workers, and grants from both State and Central governments. The Board will assess the adequacy of the fund and adjust the welfare fee if necessary.

"The State government will levy a welfare fee of 1% to 1.5% on aggregators," Labour Minister Santosh Lad confirmed, adding that the rate will be calibrated based on each aggregator’s business model and sector.

Inclusion of representatives from major platforms such as Porter, Zomato, Uber, and Amazon, as well as unions like the United Food Delivery Partners Union and the Indian Federation of App Based Transport Workers, ensures that both worker and aggregator perspectives are considered in the Board’s composition. The Board’s mandate is to extend social security and welfare benefits to gig workers across Karnataka.

Registration is mandatory for all aggregators and gig workers, with aggregators required to provide comprehensive data on their workforce as per the notification. The Board will monitor compliance and ensure that the welfare fund is utilised for the intended social security measures.

The Board’s formation follows a broader trend of state-level initiatives to address the needs of gig workers, who have been advocating for improved social security and workplace protections as recent protests have highlighted. Karnataka’s move is seen as a significant step in formalising welfare mechanisms for this growing segment of the workforce.

"The Board will assess whether the collections are sufficient to extend social security benefits to gig workers. The welfare fee may be revised, up to a maximum of 5%, if the funds are found to be inadequate," officials stated.

Other states, including Delhi, have also announced the formation of similar boards to bring gig workers under the ambit of social and health security measures as coverage revealed. Karnataka’s Board is among the first to be notified with a clear structure, operational guidelines, and a defined levy mechanism.

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Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.

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