The Karnataka Labour Department has formally constituted the 16‑member Karnataka Platform‑Based Gig Workers Welfare Board in Bengaluru to provide social security and welfare protections to gig workers across the state, under the Karnataka Platform‑Based Gig Workers (Social Security and Welfare) Act, 2025.

By government notification on 27 January 2026, all app‑based aggregator platforms including ride‑hailing, delivery and logistics companies must now register with the board within 45 days, submit worker data and pay a compulsory welfare fee of 1 %–1.5 % on payouts to gig workers, to fund benefits like health insurance, accident cover, dispute resolution mechanisms and other welfare schemes.

While worker unions and advocates have welcomed this as a long‑awaited institutional safety net, platform representatives and industry groups continue to raise concerns about regulatory and compliance burdens and governance clarity as implementation begins.

Gig Workers’ Protections Take Shape in Law and Practice

The newly formed board includes senior government officials and representatives from gig worker associations and aggregator platforms, marking an effort to balance diverse interests in shaping social security for the rapidly expanding gig economy.

Labour Minister Santosh Lad, who serves as the ex‑officio president of the board, emphasised the need for a structured forum to operationalise the 2025 Act. Government sources clarified that the welfare fee set between 1 % and 1.5 % of worker payouts is to be collected quarterly from aggregators and deposited into a welfare fund managed by the board.

Under the new regime, aggregators must upload details of their registered gig workers, and the board will maintain a Payment and Welfare Fee Verification System to ensure transparent compliance.

Beyond monetary contributions, the Act and subsequent rules emphasise rights such as unique identification for each gig worker, access to social security schemes, and provisions on grievance redressal and fair contractual terms including notification requirements before contract changes or deactivations.

Gig worker representatives from unions involved in food delivery, ride‑hailing and logistics expressed cautious optimism. Many said the welfare board and mandated contributions could finally provide formal protections that workers have struggled to secure in the largely unregulated platform economy.

At the same time, industry insiders note the need for clear procedural frameworks especially around data submission, fee reconciliation and dispute mechanisms before full implementation can begin.

From Ordinance to Implementation: A Long Road

The board’s establishment marks the culmination of political and legislative efforts stretching back to mid‑2025. In May 2025, the Karnataka Governor promulgated the Karnataka Platform‑Based Gig Workers (Social Security and Welfare) Ordinance, 2025, laying the groundwork for compulsory registration of platforms and workers, welfare fee contributions and minimum standards for contracts and worker protections.

Following months of consultations and draft rule‑making through July 2025 designed to operationalise the ordinance’s provisions on registration, fee reporting and compliance obligations the state legislature passed the Act later in the year, formalising the legal framework without major changes to the substance of the ordinance.

The background to these legal instruments reflects wider national and state‑level pressures for gig worker protections. Last year, large numbers of gig workers across India staged coordinated “log‑off” protests over working conditions, low wages and absence of social security events that helped highlight the need for state interventions. Only a handful of states, including Karnataka, Rajasthan, Bihar and Jharkhand, have enacted laws to safeguard gig workers so far, though the effectiveness of such laws continues to be debated.

Implementation now shifts from policy to practice. With aggregators required to register and begin contributions within the statutory deadlines, the welfare board will soon begin its core functions of managing the welfare fund, monitoring fees and supervising benefit delivery. Stakeholders point to the need for robust IT systems, data security standards and clear channels for worker feedback to realise the Act’s promises.

The Logical Indian’s Perspective

The operationalisation of the Karnataka Platform‑Based Gig Workers Welfare Board represents a significant step towards acknowledging and institutionalising protections for a workforce long left in regulatory limbo.

In sectors where flexible work arrangements are often conflated with precarious conditions, government action that mandates structured welfare contributions and worker representation is overdue. Yet good intentions must be matched with transparent implementation, meaningful worker engagement and accountability from platforms that have historically resisted enforced social contributions.