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State Assembly Passed Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2025; Some industry concerns persists
State Assembly Passed Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2025; Some industry concerns persists

August 28, 2025

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The state legislative assembly of Karnataka passed Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2025 last week with an objective to provide social security benefits to the platform-based gig workers in the state, and providing certain rights to the workers. Nasscom has been highlighting the industry concerns regularly through its recent representation on Karnataka Platform based Gig Workers (Social Security and Welfare) Draft Rules, 2025, and an earlier representation in 2024 on Karnataka Platform based Gig Workers (Social Security and Welfare) Bill, 2024. While the bill in 2025 has incorporated some of the feedback, some concerns from the industry remains. These concerns are as follows:

  1. The range for the calculation of the welfare fee is very wide; risk of disproportionate burden on certain kinds of businesses: The provision of the calculation of the “Gig Worker’s Welfare Fee” is 1-5% of the payout to the worker is very wide and doesn’t take the diversity of platform business models within the platform economy into account. Thus, it carries the risk of disproportionate burden on certain kinds of businesses.
  2. The definition of Gig Workers lacks harmonization with the Code on Social Security, 2020: The Code on Social Security, 2020 defined gig workers in India for the first time. It is important to note that gig workers earn from work arrangements that are outside of the traditional employer-employee relationship as mentioned in the definition in CoSS 2020. The definition of gig workers should be uniform across India as it is critical for the identification of the beneficiaries.
  3. Provision for termination in case of bodily harm is narrow and ambiguous: Requirement for the minimum 14 days notice period from the termination of work is relaxed for the suspension that includes "bodily harm”. The term "bodily harm" is not defined, which creates ambiguity and potential for inconsistent interpretation. Moreover, limiting immediate termination solely to instances of bodily harm fails to account for other risks to consumer safety.
  4. Lacks detail on the end use of the welfare fund for the gig workers: The legislation doesn’t mention the details on the specific schemes and social security benefits for the workers. Appropriate provisions should be made for an efficient utilisation of the funds by the welfare board to prevent unutilised accumulation of welfare funds.

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