New Karnataka law guarantees social security and fair pay for gig workers

In an important step toward securing the rights and welfare of platform-based gig workers, the Karnataka government has introduced a progressive new law — the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025.

The move follows Rajasthan’s lead, which became , but Karnataka’s ordinance is being hailed as more comprehensive and far-reaching.

Rahul Gandhi, who had earlier interacted with gig workers during the Bharat Jodo Yatra, welcomed the ordinance, calling it a “historic step” that puts workers at the heart of digital-era policymaking.

“Technology must bring progress, but it must also bring justice,” he said. “Karnataka has acted. is next. Our vision is to take this to every state and across the country.”

The ordinance directly addresses many of the faced by gig workers — including arbitrary app deactivations, lack of social security, and absence of transparency in pay structures. It lays down a clear legal framework that recognises gig workers as an essential part of India’s labour force.

One of the central provisions of the ordinance is the creation of a tripartite welfare board. This board will include equal representation from gig workers, the government, and platform aggregators. It is designed to foster ongoing dialogue and cooperative action across all stakeholders. 

Another crucial feature is the mandatory registration of gig workers by platform aggregators. This will enable inclusion in a newly created social security fund, which will be financed through a 1–5 per cent welfare cess levied on each app-based transaction. The collected funds will be directed towards schemes offering healthcare, insurance and other welfare benefits.

“रेटिंग नहीं, हक़ चाहिए”
“इंसान हैं हम, ग़ुलाम नहीं”

भारत जोड़ो यात्रा के दौरान जब मैं गिग वर्कर्स से मिला, तो ये शब्द मेरे दिल में उतर गए।

कर्नाटक की कांग्रेस सरकार ने एक ऐतिहासिक कदम उठाया है — एक ऐसा अध्यादेश लाया है जो गिग वर्कर्स को अधिकार, सुरक्षा और सम्मान देता है।

ये… pic.twitter.com/2IVQUXSqZo

— Rahul Gandhi (@RahulGandhi) May 29, 2025

The ordinance mandates algorithmic transparency. Workers will now have the legal right to access information on how algorithms affect their assignments, wages and overall performance ratings. They will also be able to view detailed records of each transaction and payment received.

Further, aggregators will be required to offer fair and legally compliant contracts — with provisions ensuring just piece-rate or time-rate wages, occupational safety and social security. Perhaps most notably, the ordinance introduces protection against arbitrary blocking of worker IDs, which has long been a source of insecurity among gig workers.

The law also stipulates that the working environment provided by platforms must be free of health risks, and introduces a two-tier, time-bound grievance redressal mechanism to ensure accountability.

The ordinance has been widely seen as a bold and necessary response to the changing nature of work in the platform economy. With the rise of food delivery workers, ride-hailing drivers and other app-based service providers, traditional labour protections have often failed to keep pace.

Rahul Gandhi, while commending Karnataka’s leadership, urged the Central government and other states to follow suit. Telangana, which has already published a draft bill for public consultation, is expected to act soon. Gandhi stressed that the provisions introduced in Rajasthan and Karnataka should serve as the baseline for any future national legislation in this space.

The new law marks a critical shift in recognising the dignity of gig workers. “We don’t want ratings, we want our rights. We are humans, not slaves,” Gandhi recalled, quoting gig workers he had met on the Bharat Jodo Yatra.