After notification, the welfare fee will be collected from aggregator platforms. The amount will be transferred to the Karnataka Gig Workers’ Social Security and Welfare Fund. Officials said the process will begin after the gig workers’ welfare board is formally constituted. Karnataka is among the first states to implement a funding model under gig worker welfare law.

The Karnataka Platform-based Gig Workers Act allows the government to impose a fee between one and five percent. Different rates and transaction caps are also permitted under the Act. However, the state chose a uniform rate after consultations with industry stakeholders.

The framework does not clarify who will bear the financial burden. Platforms may absorb the cost or pass it on to consumers. Industry executives earlier warned that fresh levies could affect profitability. The welfare fund will also receive worker contributions and government grants. The fund will support health cover, accident insurance, and social security benefits.

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He stated that the New Labour Code will align India’s labour policies with global standards. According to him, the reforms will boost the nation’s economic competitiveness. Naidu said the changes will ensure fair wages for workers. He also added that their safety and security will be strongly protected.

The Chief Minister highlighted that these laws focus on dignity and welfare of Indian workers. He mentioned that gig workers will also receive proper protection under the new system. Naidu pointed out that it supports women’s empowerment and promotes workplace equality.

Calling the reform a future-ready initiative, Naidu said the policy will help India handle global economic challenges. He expressed appreciation to Prime Minister Narendra Modi for implementing these major labour reforms. The Chief Minister described the New Labour Code as a crucial step to transform India into a strong global economy.

The post Naidu Welcomes New Labour Codes, Calls Them Major Reform appeared first on India Podcast.

In December 2024, Chief Minister Revanth Reddy held a meeting with gig workers and promised to create a dedicated welfare mechanism. Since then, the government has consulted senior officials and the legal department, and it has prepared the draft of the Telangana Platform-Based Gig Workers Bill 2025. The cabinet has now approved the bill, and it has also launched the initial implementation process.

The government will set up a special welfare board with the Labour Minister as chairman. Moreover, the board will include representatives from platform companies, gig workers, civil society, and technology experts. It will operate from Hyderabad and will manage worker registration, welfare schemes, safe working conditions, and transparent payment systems. Workers can self-register, and platforms must submit their worker data within 60 days. Additionally, all aggregators must register within 45 days.

The bill also creates a welfare fund supported by aggregator fees, CSR donations, and government grants. Furthermore, a dispute resolution committee and an appellate system will address complaints. Platforms must give prior notice before removing a worker, and authorities will impose penalties for any violations.

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