Karnataka Labour Minister Santosh Lad has proposed a Rs 1 per litre fuel cess to fund health coverage for unorganised sector workers.
Udupi
Karnataka Labour Minister Santosh Lad has proposed imposing a Rs 1 per litre cess on petrol and diesel to generate a dedicated health fund for unorganised sector workers. Addressing MLAs across party lines, Lad explained that the cess could raise approximately Rs 2,500 crore annually for the Labour Department, which would finance health cards covering hospital expenses up to Rs 15 lakh for 1.3 crore workers and their families.
Describing the initiative as a pioneering scheme for informal workers, Lad noted that previous governments had largely neglected health security for this segment. If approved, the health card program could be launched within three to four months.
He also highlighted the need to revise compensation for accidental deaths among unorganised workers, calling the current Rs 1 lakh relief “meagre” and outdated.
On gig economy welfare, Lad stated that the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill has been passed, with rules being drafted. Once implemented, a 1–2% platform transaction fee will fund social security benefits for gig workers.
Additionally, Lad drew attention to the Karnataka Cine and Cultural Activists (Welfare) Act, 2024, which extends welfare coverage to film and cultural sector workers, including make-up artists, stunt performers, daily-wage employees, and spot boys.
By combining innovative funding mechanisms with targeted welfare programs, the government aims to provide comprehensive health and social security support to unorganised, gig, and cultural sector workers, ensuring financial protection and improved quality of life for millions across Karnataka.