Karnataka notifies platform-based gig workers welfare law

Karnataka government notified the Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, making it the first state to introduce a dedicated social security law for gig workers. The act establishes a Welfare Board and a Social Security and Welfare Fund, financed through a welfare fee of 1–5% of each transaction payout to gig workers, payable by aggregators. It applies to a wide range of sectors including ride-sharing, food and grocery delivery, logistics, e-marketplaces, healthcare, travel, and professional services. Aggregators must register with the Board within 45 days, while gig workers will be electronically registered and issued a Unique ID portable across platforms.

For employers and platforms, the law brings both obligations and clarity. Transparent contracts, disclosure of automated decision-making systems, grievance redressal mechanisms, and strict compliance with fee contributions are now mandatory. While it increases accountability, the law also provides operational certainty and marks a pioneering step in formalising protections for gig workers in India’s platform economy.