The Karnataka government directed all gig and platform companies operating in the state to begin paying a mandatory welfare fee on payouts made to gig workers, as required under the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, and its corresponding rules notified earlier.
The order, issued on February 13, 2026, follows the government’s move to operationalise social security measures for gig and platform workers. The Act and Rules, notified in 2025, mandate a welfare fee not less than 1% and not more than 5% of the payout made to a gig worker for each transaction.
According to Section 20 of the Act, the fee is to be levied on every payout made to a gig worker for services performed through a digital intermediary. The State is empowered to notify different fee rates for different platform categories. Under the Rules, aggregators are required to automatically calculate and self-declare the welfare fee every quarter and remit the amount within five working days of the quarter’s end.
The government has now finalised the applicable rates across sectors. Ride-hailing companies must pay a one per cent welfare fee, capped at Rs 0.50 for two-wheelers, Rs 0.75 for three-wheelers and Rs 1 for four-wheelers. Food and grocery delivery platforms will pay one per cent with a Rs 0.50 cap for two-wheelers.
For logistics services, the fee is fixed at one per cent with caps of Rs 0.50 for two-wheelers, Rs 0.75 for three-wheelers, Rs 1 for light commercial vehicles (LCW) and Rs 1.50 for heavy commercial vehicles.
E-marketplace platforms will follow the same caps for two-wheelers, three-wheelers and LCVs. Professional service platforms are required to pay a 1% fee capped at Rs 1.50.
The order said that bank details for remitting the fee will be published on the Labour Department’s website. Until the Payment and Welfare Fee Verification System (PWFVS) is fully operational, platforms will be permitted to self-report details of gig worker payouts every quarter, in line with the Act’s transitional provisions.