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Karnataka’s Labour Department circulated a draft bill for public comment on June 29, 2024, proposing a welfare board, a fund and new protections for platform-based gig workers. That draft was not the final law: Karnataka later enacted the Platform Based Gig Workers (Social Security and Welfare) Act, 2025, and published final rules in November 2025. The law is listed as in force, although its welfare-fee provisions faced a court challenge in 2026.
What was Karnataka’s 2024 gig-worker bill?
The June 29, 2024 document was a proposal circulated by the Karnataka Labour Department for public comment—not a law that took effect on that date. Its stated objective was “to protect the rights of platform based Gig workers, to place obligations on aggregators in relation to social security, occupational health and safety…” That wording was the proposed bill’s own statement of purpose, as quoted by The Indian Express.
The draft proposed a framework for workers whose work is mediated through platforms such as ride-hailing, delivery or other digital services. It envisaged a statutory welfare board and fund, registration across platforms, social-security schemes, grievance handling and obligations related to safe working conditions. Important details, including the fee rate and the benefits to be provided, were left for later rules.
What did the 2024 draft propose?
The draft set out a broad package of worker protections and platform responsibilities. These were proposals at that stage; they should not be read as a guarantee that every detail survived unchanged in the 2025 Act.
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- Information and algorithmic transparency: written information about ratings, automated monitoring and other automated systems that could affect a worker’s work.
- Payment and deductions: provisions addressing payment terms and the information workers should receive about earnings and deductions.
- Termination and work allocation: safeguards that contemplated notice and written reasons for termination, as well as a right to reject a specified number of work requests.
- Grievances and disputes: processes for raising complaints and resolving disputes.
- Safety and social security: a welfare board, a fund, social-security schemes and obligations for safer working conditions.
The proposed funding mix included a welfare fee on aggregators, worker contributions and government support. The draft linked the fee to either worker payouts per transaction or aggregator turnover, while leaving the exact rate and benefit package to subsequent rules.
Is Karnataka’s gig-worker welfare law in force?
Yes. The 2024 proposal was followed by a 2025 ordinance and a bill introduced in the Karnataka Legislative Assembly on August 12, 2025. The resulting Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025 is listed as in force, and final rules were published in the Gazette in November 2025.
The enacted framework provides for registration, a welfare board and fund, payment and safety protections, information rights and grievance routes. It is therefore more accurate to describe the 2024 document as the draft bill and the later statute as the law currently listed as in force.
Who is covered, and how does registration work?
The 2025 Act defines a covered gig worker through a contractual, piece-rate work arrangement sourced through a platform. The framework provides for a unique worker ID and access to social-security schemes and grievance processes. Under the 2025 bill brief, the Board is to register newly onboarded workers electronically within 30 days, while aggregators must register within 45 days of commencement.
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Platforms must register and provide worker information. The registration model described in the brief is not simply a self-service sign-up: it assigns electronic registration to the Board and registration obligations to aggregators. The Act’s practical coverage depends on its legal definition and implementation, rather than on a broad everyday label such as “app worker.”
What protections and information does the 2025 framework provide?
The Act addresses transparent contract and payment terms; access to information about fares, earnings and customer feedback; reasons for deductions; regular payouts; safety and occupational hazards; and transparency about automated monitoring and decision-making systems. It requires payment at least weekly.
Workers have internal and Board-level grievance routes, as well as an appeal mechanism. The framework also provides for notified social-security schemes, but the available published information does not establish the full current benefit package or confirm that claims are being paid. A statutory framework for schemes is not, by itself, proof of a particular benefit or an active disbursement program.
How much is the welfare fee, and who pays it?
The Act authorizes a welfare fee of 1% to 5% of the payout to a worker, with rates and categories to be notified by the state. A February 2026 state order set a 1% rate and specified transaction caps. The caps are service- and vehicle-specific, so the percentage should not be mistaken for an uncapped charge on every transaction.
| Service category in the February 2026 order | Reported cap |
|---|---|
| Ride-hailing, two-wheeler | ₹0.50 per transaction |
| Ride-hailing, three-wheeler | ₹0.75 per transaction |
| Ride-hailing, four-wheeler | ₹1 per transaction |
| Food and grocery delivery using two-wheelers | ₹0.50 per transaction |
| Logistics | Varies by vehicle; up to ₹1.50 for heavy commercial vehicles |
| Professional activity providers | ₹1.50 per transaction |
| E-marketplace | Varies by vehicle |
The notified levy is an aggregator welfare fee; it is distinct from the draft’s broader proposed funding mix, which also contemplated worker contributions and government support. The February 2026 order allows quarterly self-reporting until the Payment and Welfare Fee Verification System (PWFVS) is operational. The available information does not establish whether that system is now operational.
What happened to the fee in court?
The welfare fee was challenged by food-delivery and e-commerce petitioners. On July 3, 2026, the Karnataka High Court declined to stay the Act, but directed certain petitioners to deposit their second-quarter welfare fees with the court registry pending further proceedings. The dispute concerned whether the state law conflicts with the central Code on Social Security, 2020; the court was reported as considering whether state benefits could supplement the central law.
That was an interim order, not a final decision on the Act’s validity or the fee. A further hearing was reported as scheduled for August 14, 2026, but the outcome of that hearing is not established here. The court’s direction applied to specified petitioners; it does not establish that every platform was subject to the same court-custody arrangement.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known—and not known—about worker benefits?
The Act establishes a welfare fund that can receive the fee, worker contributions, central and state grants, and other permitted contributions. It caps the Board’s administrative spending at 5% of the fund. That is a limit on administrative costs, not a promise that 95% will be distributed directly to workers or a guarantee of any particular benefit.
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The available information does not confirm the present list of notified benefit schemes, claim volumes or actual disbursements. A July 2026 court report attributed the claim that no benefit scheme had yet been framed to the petitioners; that statement should not be treated as independently verified confirmation of the current position.
What are the main policy questions?
PRS legislative analysis identifies several design questions rather than settled legal conclusions:
- Who counts as a gig worker? The definition relies substantially on how work is sourced through a platform. That approach may include people whose work has employee-like features, raising questions about how the category relates to other forms of employment.
- How should social-security costs be shared? The framework divides potential funding among platforms, workers and government. The practical distribution of costs can affect workers’ net earnings and the cost of platform services.
- Does a payout-based levy treat similar work consistently? A fee linked to worker payouts may produce different outcomes for comparable services if businesses route payments differently.
- How much detail belongs in the Act versus later rules? The framework creates institutions and obligations, while scheme details and implementation determine what workers can actually claim.
For national comparisons, dates matter. PRS’s 2025 brief said that the national Code on Social Security, 2020 had not yet come into effect at the time of its analysis. That dated statement should not be taken as a verified account of the Code’s status in October 2026.
How large is India’s gig workforce?
NITI Aayog’s 2022 estimates, cited by PRS, put India’s gig workforce at 77 lakh in 2020–21, or 1.5% of the workforce. Its projection was 2.35 crore workers, or 4.1% of the workforce, by 2029–30. These are India-wide estimates and projections, not counts of Karnataka workers; the 2029–30 figure is a forecast, not an observed current total.
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