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- Why in News?
- The Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, recently passed by the Karnataka government, has attracted national attention for its potential impact on India’s gig economy. The ordinance mandates a welfare fund for gig workers, financed through a 1–5% levy on transactions made via aggregator platforms like Ola, Swiggy, and Amazon. This fund will help provide benefits such as insurance, pensions, and mechanisms for grievance redressal.
- Introduction:-
- The ordinance aims to bridge existing gaps in social protection for gig workers. According to the Code on Social Security, 2020, gig workers operate outside the traditional employer-employee framework. They are broadly categorized as platform-based (e.g., Zomato, Ola) and non-platform-based workers. NITI Aayog estimated 7.7 million gig workers in 2020–21, projected to increase to 23.5 million by 2029–30.
- Key Provisions:-
- Key provisions include setting up a state-level Welfare Board and mandating aggregator platforms to contribute a welfare fee of 1–5% per transaction. This fee, alongside government grants and worker contributions, will fund social welfare measures. Additional features include safeguards against unjust terminations, a unique ID usable across platforms, and increased transparency in algorithmic management.
- Gig workers face numerous challenges such as lack of job security and social protection. States like Rajasthan and Jharkhand have introduced legislative measures, and the E-Shram portal (launched in 2021) aims to extend social benefits by registering informal workers.