Published Feb 17, 2026 | 9:49 AM ⚊ Updated Feb 17, 2026 | 9:49 AM
Gig workers. (Representational/ iStock)
Synopsis: The Karnataka government notified the quantum of welfare fee on payouts made to gig workers by aggregator platforms, as proposed under the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025. The state government said all payments made to workers should be mapped onto a Payment and Welfare Fee Verification System.
The Karnataka government notified the quantum of welfare fee that has to be levied on payouts made to gig workers by aggregator platforms, as proposed under the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025.
The state government said the fee will be used to extend social security benefits to gig and platform workers. The welfare fee will be calculated on the final payout to the gig worker in each transaction.
It said the levy and collection of the welfare fee is mandatory for all the platforms that employ gig workers, based on the final payouts made to the workers.
The Karnataka government ordered that all platforms and aggregators operating within the state should make payouts to gig workers for every gig work undertaken by them, as prescribed.
According to the Government Order (GO), the rates for each of the categories are:
Ride-hailing services
1. Two-Wheeler (2W): 1% and a Cap of ₹0.50.
2. Three-Wheeler (3W): 1% and a Cap of ₹0.75.
3. Four-Wheeler (4W): 1% and a Cap of ₹1.00.
Food and grocery delivery services
1. 2W:1% and a Cap of ₹0.50.
Logistics services
1. Two-Wheeler (2W): 1% and a Cap of ₹0.50.
2. Three-Wheeler (3W): 1% and a Cap of ₹0.75.
3. Light Commercial Vehicle (LCV): 1% and a Cap of ₹1.00.
4. Heavy Commercial Vehicle (HCV): 1% and a Cap of ₹1.50
E-marketplace services
1. 2W:1% and a Cap of ₹0.50.
2. Three-Wheeler (3W): 1% and a Cap of ₹0.75.
3. Light Commercial Vehicle (LCV): 1% and a Cap of ₹1.00.
Professional activity providers
1. 1% and a Cap of ₹1.50.
The state government said all payments made to workers should be mapped onto a Payment and Welfare Fee Verification System (PWFVS) administered by the state government and monitored by the Platform-Based Gig Workers Welfare Board.
It added that every payment made to gig workers and the welfare fee deducted by platforms should be sent to PWFVS, and the details of the welfare fee collected and spent should be disclosed.
(With inputs from Anisha Reddy.)
