You may need to register your maid, pay up to 5% welfare fee as Karnataka plans bill for domestic workers

5% welfare fee

The draft bill makes it mandatory for employers, agencies, or digital platforms to contribute up to 5 percent of wages as a welfare fee to a dedicated Social Security and Welfare Fund. The state is also working on a tripartite contribution system, with employers, employees, and the government contributing to the fund, though the sharing ratio is yet to be finalised.

"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 or pay out as the case may be paid to the domestic worker as welfare fee through digital transaction to the fund so created", the draft bill said.

"The welfare fee so levied shall be paid to the fund once every quarterly or every six months by submitting wage calculation sheet in the format so prescribed and upload the same in the digital portal annually by such employers. Provided, if the annual statements so uploaded doesn’t match the actual welfare fee so paid, such employers are liable for penalty under the act", it said.

The tripartite welfare board will manage the fund, roll out welfare schemes, and conduct inspections. Benefits include compensation for workplace injuries, medical expenses, pensions, education support, and funeral assistance.

Who is an employer?

As per the draft bill, domestic work is any household work done through an employer or agency. A domestic worker is anyone engaged directly, by contract, or via platforms- part-time, full-time, live-in or otherwise- including casual, gig, piecework, and migrant workers. An employer is anyone hiring such workers directly, through an agency or platform, including the head of household, a person entrusted with control, or any adult residing in the household. The draft bill prohibits employing a domestic worker without a written agreement between the employer and worker. The agreement must follow the minimum labour standards in the model employment agreement, specifying the worker’s details, nature of work, hours, wages, benefits, welfare fee, and other contributions.

The Board will provide every beneficiary with a unique identification number. Registered workers will be entitled to minimum wages, overtime pay, weekly holidays, annual leave, maternity benefits, and training programmes. The draft bill prohibits employment without written agreements and protects workers from forced labour, discrimination, exploitation, and abuse.

Registration must be completed within 30 days of hiring

All domestic workers in metropolitan areas will be required to register as beneficiaries. Recruitment agencies, placement services, and app-based platforms engaging such workers must also register, while employers must file employment details within 30 days of hiring. It can be registered through an application on the digital portal along with the prescribed fees.

"If a domestic worker is illiterate or a migrant, the service provider, placement agency, or employer must register them with the authorities in the prescribed format within one month of employment", it said.

District-level grievance committees will resolve disputes. Non-registration, non-payment of welfare contributions, or violation of employment terms will attract penalties.

Also, read: Karnataka likely to provide six days of paid menstrual leave annually for working women

Voices on the bill

Karnataka Labour Minister Santosh Lad told Moneycontrol: “We want to ensure domestic workers get social security. Their numbers are rising in cities, but the sector remains unorganised, leading to complaints of low or irregular pay. Many workers fear raising issues. We are drafting a bill to address these concerns. A preliminary draft should be ready in a week or two, followed by legal and inter-departmental review before it goes to the CM and Cabinet.”

Additional Labour Commissioner G Manjunath told Moneycontrol: “The bill aims to extend the rights of domestic workers in line with the International Labour Organisation (ILO) convention. It is part of the state’s long effort to ensure social security, especially for women, who form the majority in this sector.”

Social activist Ruth Manorama said: “It is significant that the bill has finally been drafted after years of struggle. While it looks comprehensive, we will discuss it with workers and suggest changes on issues like registration and contribution shares.”

Also, read: Karnataka nod to bill for welfare cess on movie tickets, OTT subscriptions but implementation unclear

The Karnataka government had earlier introduced the Gig Workers Social Security and Welfare Bill, 2024, and the Cine and Cultural Activists Welfare Bill, 2024, proposing dedicated funds for worker benefits. Similarly, Telangana is drafting a bill on security and minimum wages for domestic workers.