The Karnataka government has taken a decisive step toward safeguarding the interests of gig and platform-based workers by implementing a new provision under the Karnataka Platform-based Gig Workers (Social Security & Welfare) Act, 2025. The regulation makes it compulsory for e-commerce firms and app-based aggregator companies to set aside 1 per cent of their commission earnings, within a defined limit, for the welfare of gig workers in the state.
The contribution will be channelled into a dedicated welfare corpus aimed at extending social security benefits, including insurance coverage and support measures, to workers engaged in sectors such as food delivery, ride-hailing, courier services and online marketplaces. The move seeks to address the absence of formal protections in a sector that has witnessed rapid growth alongside Bengaluru’s expanding digital economy.
Government officials said the initiative reflects a policy shift that acknowledges gig workers as an integral part of the workforce, deserving of institutional support and protection. Labour organisations have hailed the decision as a progressive reform, while platform companies are expected to assess the implications of the levy on their business models.
