The Karnataka Government on Monday, Feb.16 has notified a 1% welfare fee on every transaction carried out by aggregator platforms to fund social security measures for platform-based gig workers.
According to a report by The Hindu, the move comes under the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, which mandates a welfare levy between 1% and 5% of the worker payout per transaction.
Meanwhile, the state government has opted for the lower end, fixing the fee at 1% across services.
How Much Will Each Platform Pay?
While the welfare fee is set at 1%, the per-transaction cap varies across different sectors.
For food and grocery delivery platforms like Swiggy, Zomato, Blinkit, Zepto, and BigBasket, the cap is fixed at Rs 0.5 per transaction.
For ride-hailing services including Rapido, Namma Yatri, and Uber, the cap is Rs 0.5 for two-wheelers, Rs 0.75 for three-wheelers, and Rs 1 for four-wheelers.
Logistics service providers such as Porter, Delhivery will pay Rs 0.5, Rs 0.75, Rs 1, and Rs1.5 per transaction for two-wheelers, three-wheelers, light commercial vehicles, and heavy commercial vehicles, respectively.
For e-commerce and internet based marketplace logistics, like e-kart, BlueDart among others, the cap is Rs 0.5 for two-wheelers, Rs 0.75 for three-wheelers, and Rs 1 for light commercial vehicles. Professional service providers such as Urban Company will face the highest cap of Rs 1.5 per transaction.
How Will Payments Be Made?
According to a Government Order published in the Gazette on Feb. 13, cited by The Hindu in its report, every aggregator must calculate the welfare fee, self-declare the amount, and remit it to the government within five working days from the end of each quarter.
All payments will be processed through the Payment and Welfare Fee Verification System (PWFVS), a digital platform administered by the state government and monitored by the Gig Workers Social Security Board.
The government will publish details of welfare fee collections and utilisation on the portal for transparency. Bank account details for remitting the welfare fee will be made available on the website of the Labour Department.
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