The Karnataka Assembly on Tuesday passed the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, a landmark piece of legislation that Labour Minister Santosh Lad said would benefit approximately 400,000 people in the state.
The Bill replaces an ordinance issued by the government in May. This is to offer social security to gig workers employed in different sectors such as ride-sharing, food and grocery delivery, e-commerce and logistics. As per a Niti Aayog report, Lad quoted that the gig economy is expected to employ 23.5 million workers by 2029-30.
He emphasised the harsh working conditions gig workers often face, stating that to earn around ₹1,800, a worker might need to work up to 16 hours a day. He also mentioned that similar laws to protect gig workers have been enacted in other countries, such as Spain, Singapore, and South Korea.
The new Bill proposes the creation of a Karnataka Gig Workers Social Security and Welfare Fund. A welfare fee, ranging from 1 to 5 per cent of the payout to the worker, will be levied on each transaction. Labour Minister Santosh made it clear that the fee would not be uniform across all gig businesses, and the exact rate would be specified in the rules.
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A separate Gig Workers Welfare Board will be set up for the purpose of enrolling workers and aggregators, overseeing the system, and bringing in social security schemes, such as issuing "special health cards."
When a Bharatiya Janata Party MLA Suresh Kumar requested the minister to bring 380,000 outsourced government employees within the ambit of the new Bill, Lad replied that this was not feasible because they do not fall under the definition of a gig worker.
He added that the government is, however, forming district-level cooperative societies to safeguard the interests of these outsourced employees. Another BJP member, CK Ramamurthy, requested that the government ensure the Bill benefits Kannadiga gig workers, while Dheeraj Muniraju questioned if there could be a cap on maximum working hours. Lad explained that gig work involves flexible hours, and workers can choose their schedules and even reject work.
In a separate move, the Assembly also passed the Karnataka Souharda Sahakari (Amendment) Bill, which mandates that Souharda cooperatives must set aside 20 pc of their total deposits at the end of each quarter as a "Statutory Liquid Reserve" to protect depositors' interests.
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