On May 27, 2025, the Government of Karnataka promulgated the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025. This ordinance aims to safeguard the rights and welfare of gig workers—independent workers who provide services through digital platforms without the security of a fixed salary or traditional employee benefits.
Who is Covered:
According to the ordinance, the following types of platforms fall under its scope as employers of gig workers:
- Ride-share services: e.g., Ola, Uber
- Food and grocery delivery: e.g., Swiggy, Zomato
- Logistics services: e.g., Dunzo, Flipkart
- E-marketplaces: e.g., Amazon, Flipkart
- Professional services: e.g., Bro4U, Urbancompany
- Healthcare services: e.g., Practo, 1mg
- Travel and hospitality: e.g., Ixigo, Makemytrip
- Content and media services: e.g., YouTube, Spotify
Gig Worker Welfare Fee:
All eligible platforms are now required to contribute to the newly created Gig Workers’ Social Security and Welfare Fund. A “Gig Worker Welfare Fee”—ranging from 1% to 5% per transaction—will be applied. This fee is intended to support welfare measures for gig workers.
Please note: The fee will be collected from customers, and not directly from the platforms themselves.
Employers (aggregators/platforms) are now legally responsible for ensuring:
- Fair contracts, timely payments, and safe work conditions,
- Registration and tracking of gig workers,
- Deduction and remittance of welfare contributions,
- Transparency in automated systems and worker rights.
| Compliance Calendar (Post-Ordinance Commencement) | ||||
| S No | Obligation | Responsible Party | Frequency | Due Date (from Ordinance Commencement) |
| 1 | Register platform with the Board | Platform | One-time | Within 45 days |
| 2 | Submit initial database of gig workers | Platform | One-time | Within 45 days |
| 3 | Register newly onboarded gig workers | Platform | Ongoing | Within 30 days of onboarding |
| 4 | Update Board on gig worker exits/joins | Platform | Ongoing | As changes occur |
| 5 | Disburse payouts to gig workers | Platform | Weekly (at minimum) | Ongoing (no delays allowed) |
| 6 | Deduct and deposit Gig Worker Welfare Fee | Platform | Quarterly | End of each quarter |
| 7 | Display grievance redressal mechanism on platform | Platform | Ongoing | Immediately upon registration |
| 8 | Maintain point of contact in-app and offline | Platform | Ongoing | Immediately upon registration |
| 9 | Submit audited accounts to State Government | Platform | Annually | Before March 31 each year |
| 10 | Board meeting (if nominated member) | Platform nominee | Quarterly | At least once every 3 months |
| 11 | Notify any contract changes | Platform | As needed | 14 days prior to changes |
| 12 | Notify reasons for termination/deactivation | Platform | As needed | Minimum 14 days notice (unless bodily harm case) |
About Ordinance:
The Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025 is not yet a law passed by the legislature — it is currently an Ordinance.
- It was promulgated by the Governor of Karnataka on May 27, 2025 under Article 213 of the Indian Constitution.
- This step was taken because the Legislative Assembly and Council were not in session and immediate action was deemed necessary.
- An ordinance has the same force as a law, but it is temporary.
Next steps:
- The ordinance must be approved by the state legislature within 6 months of its next session to become a permanent law.
- If not approved, it ceases to operate.
It is currently an ordinance — not a bill or an enacted law. It temporarily has the force of law, but needs legislative approval to be permanent.