{"id":44441,"date":"2025-05-30T19:30:47","date_gmt":"2025-05-30T14:00:47","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=44441"},"modified":"2025-06-25T13:00:02","modified_gmt":"2025-06-25T07:30:02","slug":"karnataka-platform-based-gig-workers-welfare-ordinance-2025","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/30-05-2025\/karnataka-platform-based-gig-workers-welfare-ordinance-2025","title":{"rendered":"Karnataka\u2019s Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025 was passed for establishing a legal framework for protecting and supporting gig workers across the state.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who are Gig workers?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 2(35) of the <strong>Code on Social Security, 2020<\/strong> defines a gig worker as \u201ca person who participates in a work arrangement and earns from such activities outside of a traditional employer\u2013employee relationship.\u201d<\/li>\n\n\n\n<li>In the recent report titled <strong>India\u2019s Booming Gig and Platform Economy<\/strong>, projected that the number of gig workers in India may rise to 23.5mn by 2030.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"f7f3f1\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"749\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/05\/the-gig-is-growing.png\" alt=\"the gig is growing\" class=\"not-transparent wp-image-44443\" style=\"--dominant-color: #f7f3f1; width:366px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/05\/the-gig-is-growing.png 640w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/05\/the-gig-is-growing-256x300.png 256w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Background<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The introduced labor codes in 2020, including the <strong>Code on Social Security, 2020<\/strong>, to extend welfare benefits to unorganized and gig workers.<\/li>\n\n\n\n<li>The code defines platform workers and mandates the formation of a <strong>National Social Security Board.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Provisions of the Law<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gig Workers Welfare Board: <\/strong>&nbsp;The board would be established to implement the gig workers\u2019 welfare law. The Board will look after all the issues of gig workers and platforms.<\/li>\n\n\n\n<li><strong>Platform and Worker Registration: <\/strong>Aggregator platforms like Zomato, Ola, Swiggy, Amazon must register with a state welfare board and enroll all their gig workers, who will receive a unique ID.<\/li>\n\n\n\n<li><strong>Welfare Contributions: <\/strong>Aggregator platforms like Zomato, Ola, Swiggy, Amazon must contribute 1% to 5% of their payout to workers into a state-run welfare fund for <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/12-06-2025\/india-social-protection-cover-rises-2025-ilo\"><strong>social security.<\/strong><\/a><\/li>\n\n\n\n<li><strong>Disclosing Algorithmic Logic: <\/strong>Platforms need to explain how their algorithms function for task allocation, pay, ratings, and access, ensuring no discrimination.<\/li>\n\n\n\n<li><strong>Written Agreements:<\/strong> Platforms are required to provide clear, written contracts to workers detailing earnings, payment methods, and conditions for access blocking.<\/li>\n\n\n\n<li><strong>Grievance Redressal and Working Conditions: <\/strong>A two-tier grievance system is established, starting with an Internal Dispute Resolution Committee within the platform, and escalating to the Welfare Board.<\/li>\n\n\n\n<li><strong>Interest and Penalties for Non-Compliance: <\/strong>Late payment of welfare fees incurs a 12% annual interest. Non-compliance can lead to fines of up to Rs 5,000 for the first violation and up to Rs 1 lakh for subsequent violations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges to Gig Workers<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Job Insecurity and Lack of Social Protection<\/li>\n\n\n\n<li>Low Wages and Income Inequality<\/li>\n\n\n\n<li>Algorithms control task allocation, pay rates, performance ratings, and even deactivation, but their logic is often hidden from workers.<\/li>\n\n\n\n<li>The unclear employment status of gig workers makes it difficult to apply existing labor laws, which were designed for traditional employment.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps Taken by India for Gig Workers<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Social Security Code, 2020:<\/strong> This code recognizes gig workers as a separate category and aims to extend social security benefits to them.<\/li>\n\n\n\n<li><strong>e-Shram Portal:<\/strong> This is a national database for unorganized sector workers, including gig and platform workers.<\/li>\n\n\n\n<li><strong>Union Budget 2025-26:<\/strong> Included provisions of issuance of identity cards, and healthcare coverage under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).<\/li>\n\n\n\n<li><strong>Rajasthan Platform-Based Gig Workers Act, 2023: <\/strong>This is India&#8217;s first state-level legislation specifically addressing gig worker rights.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/m.economictimes.com\/tech\/startups\/gig-workers-welfare-programme-with-ordinance-out-karnataka-to-issue-draft-rules-in-two-weeks\/articleshow\/121473454.cms\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>In News<\/strong><\/h3>\n<li class=\"ms-5\">Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025 was passed for establishing a legal framework for protecting and supporting gig workers across the state.<\/li>\n<p><\/p>\n<h3><strong>Who are Gig workers?<\/strong><\/h3>\n<li class=\"ms-5\">Section 2(35) of the Code on Social Security, 2020 defines a gig worker as \u201ca person who participates in a work arrangement and earns from such activities outside of a traditional employer\u2013employee relationship.\u201d<\/li>\n<li class=\"ms-5\">In the recent report titled India\u2019s Booming Gig and Platform Economy, projected that the number of gig workers in India may rise to 23.5mn by 2030.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/30-05-2025\/karnataka-platform-based-gig-workers-welfare-ordinance-2025\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44441","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=44441"}],"version-history":[{"count":5,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44441\/revisions"}],"predecessor-version":[{"id":46193,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44441\/revisions\/46193"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=44441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=44441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=44441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}