BENGALURU: The state government has issued a notification mandating collection of a 1% Gig Workers Welfare Fee on payouts made by aggregators under the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025.
Capped by vehicle and service category, platforms must remit quarterly payments, funding social security schemes for gig and platform workers statewide.
In a Government Order dated February 13, the Labour Department directed that all platforms and aggregators listed under the Act must deduct and remit a welfare fee on payouts made to gig workers for every transaction undertaken through their platforms. The move is aimed at funding social security schemes for gig and platform workers.
The welfare fee shall range between 1% and 5% of the payout made to a gig worker. The State has fixed the fee at 1% of the payout, subject to category-wise caps depending on the nature of service and vehicle type.
For ride-hailing services, the fee will be 1% capped at Rs 0.50 for two-wheelers, Rs 0.75 for three-wheelers, and Rs 1 for four-wheelers. Similar rates apply to food and grocery delivery services using two-wheelers. In logistics services, the cap is Rs 0.50 for two-wheelers, Rs 0.75 for three-wheelers, Rs 1 for light commercial vehicles and Rs 1.50 for heavy commercial vehicles. E-marketplace services and professional activity providers will also attract a 1% fee with specified caps.
The fee excludes settled payments such as tips, incentives and referral bonuses. Aggregators must calculate and self-declare the welfare fee within five working days of the end of each quarter and remit it as notified by the government from time to time.
All payments and deductions are to be mapped to a Payment and Welfare Fee Verification System (PWFVS), to be administered by the state. Until the system is operational, platforms may self-report transaction details quarterly. Bank details for remittance will be hosted on the Labour Department website.