Tue May 27 19:05:24 UTC 2025: **News Article:**

**Karnataka to Implement Gig Worker Welfare Fund via Ordinance**

BENGALURU, May 28, 2025 – The Karnataka state government has announced the implementation of the Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025, designed to protect the rights and improve the welfare of the state’s growing gig economy workforce. With the state legislature currently out of session, the government chose the ordinance route to quickly enact these provisions, which will be replaced by a bill during the monsoon session.

The core of the ordinance is the creation of a welfare fund for platform-based gig workers, financed by a mandatory welfare fee ranging from 1% to 5% of each transaction payout. This fee will be collected by aggregators and deposited into the fund.

To manage this initiative, the Karnataka Platform Based Gig Workers Welfare Board will be established in Bengaluru. The board will be responsible for implementing social security and other benefits within a timeframe set by the state government. The ordinance also mandates aggregators to provide a comprehensive database of their gig workers to the board within 45 days.

Key provisions of the ordinance include:

* Protecting the rights of platform-based gig workers.
* Placing obligations on aggregators for social security and occupational health and safety.
* Ensuring transparency in automated monitoring and decision-making systems.
* Establishing dispute resolution mechanisms.
* Registering gig workers and aggregators operating in the state.

A Payment and Welfare Fee Verification System will be introduced to improve transparency in welfare fee collection. All payments made to workers and associated welfare fee deductions must be reported through the system.

In addition to the gig worker ordinance, the government also promulgated two other ordinances: The Karnataka Compulsory Service by Candidates completed Medical Courses (Amendment) Ordinance, 2025, which allows medical graduates to pursue higher studies with a conditional no-objection certificate, contingent on completing a one-year compulsory service post-specialization and the Karnataka State Civil Service (Regulation of Transfer of Medical Officers and Other Staff) (Amendment) Ordinance 2025, for bringing transparency in transfers through counselling and filling crucial posts on priority.

The state government hopes these measures will provide essential social security and welfare benefits to its gig economy workforce.

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