Understanding the New Gig Workers Ordinance in Karnataka
Karnataka Issues Platform-Based Gig Workers (Social Security and Welfare) Ordinance 2025: Karnataka has recently introduced the Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025. This new law aims to fill in the gaps in protections for gig workers — a group often overlooked in traditional labor laws. But what exactly is a gig worker? According to the Code on Social Security, 2020, a gig worker is someone who works outside the usual employer-employee relationship. Instead of fixed jobs, these workers take on short-term, flexible tasks through platforms.
For example, delivery partners on Zomato or Ola drivers are platform-based gig workers. Then, there are non-platform gig workers who work independently without apps or companies acting as middlemen.
The Growing Gig Workforce in India
India’s gig economy is expanding fast. The NITI Aayog estimates that in 2020-21, there were around 7.7 million gig and platform workers in the country. This number is expected to almost triple to 23.5 million by 2029-30. With such rapid growth, it’s clear why states like Karnataka are stepping in to ensure these workers get fair treatment and social security.
Key Features of the Ordinance
One major highlight of this ordinance is the creation of a Welfare Board at the state level. This board will oversee the implementation of social security measures for gig workers.
Another important feature is the introduction of a welfare fee. Aggregator platforms like Zomato, Swiggy, Ola, and Amazon will be required to contribute between 1% and 5% of each transaction with gig workers to this welfare fund. Alongside contributions from workers and government grants, this fund will provide social security benefits.
The ordinance also offers protection against unfair dismissals and introduces a unique ID system for gig workers. This ID will be valid across different platforms, helping track and secure their rights better. Additionally, there will be more transparency in how platforms use automated monitoring and decision-making systems, which often impact workers without clear explanations.
Challenges Faced by Gig Workers
Despite their importance, gig workers face many issues. Their jobs are often uncertain and unstable. Many lack basic social protection like health insurance or paid leave. Algorithmic management—where software controls work allocation and evaluations—can feel impersonal and unfair. These factors make it hard for gig workers to enjoy the same rights as regular employees.
Other States Taking Steps for Gig Workers
Karnataka isn’t alone. Rajasthan passed the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act in 2023, aiming for similar protections. Jharkhand has also drafted a bill in 2024 to improve welfare for platform-based gig workers.
On the national level, the E-Shram portal, launched in 2021, helps register unorganised workers—including gig workers—to connect them with social security benefits.
Static Usthadian Current Affairs Table
Karnataka Issues Platform-Based Gig Workers (Social Security and Welfare) Ordinance 2025:
| Topic | Details |
| Ordinance Name | Karnataka Platform-Based Gig Workers Ordinance 2025 |
| Gig Worker Definition | Person working outside traditional employer-employee setup (Code on Social Security, 2020) |
| Estimated Gig Workers in India | 7.7 million (2020-21), projected 23.5 million by 2029-30 (NITI Aayog) |
| Welfare Board | State-level body to manage gig workers’ welfare |
| Welfare Fee | 1-5% transaction fee from aggregator platforms |
| Platforms Included | Zomato, Ola, Swiggy, Amazon, others |
| Key Benefits | Unfair dismissal protection, unique ID, transparency in automated systems |
| Challenges for Gig Workers | Job insecurity, lack of social protection, algorithmic management |
| Other States’ Initiatives | Rajasthan Gig Workers Act 2023, Jharkhand Draft Bill 2024 |
| National Initiative | E-Shram portal (2021) |
