Karnataka plans new law to give domestic workers minimum wage, social security: Report

A new board will oversee the framework, requiring employers to contribute 5% of wages to a social security fund.

The Karnataka government is preparing a landmark law to bring domestic workers under the ambit of social security and welfare schemes.

The proposed Domestic Workers (Social Security and Welfare) Bill aims to guarantee minimum wages. (HT)

The proposed Domestic Workers (Social Security and Welfare) Bill aims to guarantee minimum wages, extend welfare benefits, and formalise protections for thousands of household workers in urban areas.

The draft legislation seeks to create a rights-based contributory framework under which all domestic workers, including maids, cooks, drivers, and nannies, along with their employers and service providers, will be required to register. A dedicated Karnataka State Domestic Workers Social Security and Welfare Board will be set up to implement the law, frame schemes, and resolve grievances.

According to a report by Moneycontrol, the Board will be structured as a tripartite body, ensuring equal representation from government officials, domestic workers and their unions, employers, service providers such as agencies and digital platforms, as well as representatives from resident welfare associations.

One of the most significant provisions is the creation of a Social Security and Welfare Fund. Employers, placement agencies, or service platforms will be mandated to contribute up to 5 percent of wages paid to domestic workers towards this fund, the report further added.

The contribution must be made digitally. The state is also considering a tripartite contribution model, where domestic workers, employers, and the government will each share responsibility for funding, though the exact ratios are still being discussed.

The draft bill makes clear that, “The employer or the service provider or the placement agency including the platforms engaged in the services of providing employment or work opportunities to the domestic workers within the state of Karnataka shall be liable to pay up to 5 percent of the wages or remuneration as welfare fee through digital transaction to the fund so created.”