Karnataka notifies 1% welfare fee to be collected from aggregators for social security of gig workers

The Karnataka government has notified the quantum of the welfare fee to be collected from aggregator platforms to provide social security benefits to platform-based gig workers.  

While the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, mandates a welfare fee of 1-5% of the payout to the worker for each transaction, the government has decided to stick to the lower end of the range, and has fixed the fee at 1% per transaction for all services.  

The cap per transaction, however, varies for different services.