Karnataka Platform-Based Gig Workers

Karnataka has recently passed the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, aimed at safeguarding the rights and welfare of gig workers.

Key Provisions of the Bill:

1. Establishment of a Welfare Board:

   • The Welfare Board will be responsible for the registration of workers and aggregators.

   • It will also create social security schemes, monitor their implementation, and ensure compliance.

2. Social Security and Welfare Fund:

   • The fund will be financed by welfare fees collected from transactions between workers and aggregators or based on the overall turnover of the company.

   • Contributions will also be made by both the Union and State governments.

3. Registration and Transparency:

   • Aggregators (e.g., companies like Uber, Swiggy) will be required to register gig workers, clearly outline the terms of work, and explain how automated systems (such as algorithms for task allocation) affect workers’ conditions.

4. Regional Developments:

   • Rajasthan and Bihar have already passed similar legislation in 2023 and 2025, respectively, setting a precedent for other states.

Understanding Gig Workers

Who Are Gig Workers?

Gig workers are individuals who work outside of traditional employer-employee relationships, often performing short-term, flexible tasks based on demand. The Code on Social Security, 2020 defines a gig worker as a person working in this non-traditional setting.

Types of Gig Workers:

1. Platform Workers:

   • These workers are associated with online platforms like Ola, Uber, Zomato, Swiggy, Urban Company, etc.

   • Their work relies heavily on technology and apps for task allocation, payments, and communication with clients.

2. Non-Platform Gig Workers:

   • These workers operate in traditional sectors, often in casual wage or part-time roles.

   • They might include casual laborers, domestic workers, or workers in the informal economy who do not rely on platforms for their work.

Reasons for Growth of the Gig Economy:

• Demographic Dividend: With 65% of India’s population in the age group of 15-64 years, gig work provides flexible opportunities for a large part of the labor force.

• Urbanization and Digitalization: The increasing adoption of smartphones and internet (85.5% of households in India own a smartphone) enables more people to participate in platform-based gig work.

• Impact of COVID-19: The pandemic gave a major boost to remote work, furthering the growth of gig economy jobs.

Significance of the Gig Economy

1. For the Government:

   • Utilizing Demographic Dividend: The gig economy can help absorb a large section of the workforce, contributing to job creation. Over 56% of all new jobs in India are created by businesses that serve the gig economy.

   • Economic Growth: By 2030, the gig economy could contribute $250 billion in transactions, amounting to 1.25% of India’s GDP (NITI Aayog estimate).

2. For Society:

   • Empowering Vulnerable Groups: According to the ILO, gig work can empower women, youth, and physically disabled individuals by offering flexible and accessible employment.

   • Micro-Entrepreneurship: Platforms like Airbnb and Urban Company enable individuals to monetize their skills, assets, and time with lower barriers to entry.

3. For Workers:

   • Flexible Employment: Gig workers enjoy benefits such as remote work, task-based jobs, and flexible hours.

   • Skill Development: The gig economy helps workers develop a diverse skill set, including digital literacy, self-management, communication, and problem-solving.

4. For Consumers:

   • Access to Global Markets: Platforms like Airbnb and Amazon allow consumers access to products and services from all over the world.

   • Convenience and Affordability: Gig platforms offer personalized and cheaper services, benefiting consumers through greater access and convenience.

Challenges Faced by Gig Workers

1. Lack of Social Security:

   • More than 82.5% of gig workers are informal employees (NITI Aayog), without access to traditional labor benefits such as health insurance, retirement funds, or paid leave.

2. Health and Safety Concerns:

   • Gig work can be physically demanding, leading to safety concerns. For instance, tight delivery schedules can result in accidents, especially for those working in food delivery or ride-sharing services.

3. High Working Hours:

   • A study by the Tata Institute of Social Sciences revealed that 60% of platform workers work seven days a week, and 47% work more than 12 hours a day, indicating a heavy workload and limited work-life balance.

4. Income Uncertainty:

   • Around 50% of gig workers do not earn the statutory minimum wage, leading to unpredictable income streams. Fairwork India has highlighted this issue in its research.

5. Algorithmic Asymmetry:

   • Platform algorithms can lead to imbalances in how work is assigned and compensated. Issues include:

     • Lack of Information Access: Aggregators may have access to workers’ personal data, raising privacy concerns.

     • Opacity: The rating systems, task allocation, and wages are often based on algorithms that lack transparency, making it difficult for workers to know how decisions are being made.

Conclusion and Future Outlook

The Karnataka Platform-Based Gig Workers Bill, 2025 is a step toward recognizing the rights of gig workers and ensuring their protection. However, more comprehensive frameworks at the national level are necessary to address the socio-economic challenges faced by gig workers, including fair wages, social security, safe working conditions, gender inclusion, and algorithmic accountability.