Minimum Wage For Domestic Workers? Karnataka Plans 5% Welfare Cess

Karnataka Plans 5% Welfare Cess for Domestic Workers, Considering Minimum Wage Requirements

Employers failing to pay minimum wages could be sentenced to up to six months in prison.

Bengaluru:

Following the Karnataka Labour department's recent introduction of a bill providing social security for gig workers, a similar legislation for domestic workers is now in development.

NDTV has obtained a draft of the Karnataka Domestic Workers (Social Security and Welfare) Bill, 2025, which aims to provide rights-based contributory social security and welfare to thousands of domestic workers across the state, including house helps, caretakers, housekeeping personnel, and home nurses.

The draft legislation requires written agreements between employers and domestic workers that specify wages, working hours, benefits, and welfare contributions. It also mandates registration for all domestic workers, employers, and service providers - including digital platforms - through a government portal.

Karnataka plans to establish a State Domestic Workers Social Security and Welfare Board responsible for creating welfare schemes, overseeing funds, and delivering skill training. The Board will comprise representatives from government, workers' unions, employers, service providers, and resident welfare associations.

To finance these initiatives, the draft proposes either a welfare fee of up to 5% of workers' wages to be paid by employers/service providers, or alternatively a 1% levy on property tax collected by municipal authorities.

The legislation includes strict penalties: unregistered employers or agencies may face imprisonment up to three months and fines up to 20,000 rupees, with more severe consequences for repeat violations.

Employers who pay below minimum wages could be imprisoned for up to six months.

The draft bill remains in its initial stage and will undergo scrutiny, stakeholder consultations, and public feedback before being presented to the cabinet and subsequently to the state assembly.