Levy of Welfare Fee on Platform-Based Gig Workers – Government Order

Notification / Circular No.: Government Order No. LD 413 LET 2023 dated February 13, 2026

Applicable Act / Rule: The Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025, The Karnataka Platform Based Gig Workers (Social Security and Welfare) Rules, 2025

Applicable Section / Rule: Section 20, Section 21, Rule 17

Effective Date: February 13, 2026

The Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025 was notified vide Notification No. DPAL 37 SHASANA 2024 dated September 12, 2025 and the corresponding Rules were notified vide Notification No. LD 413 LET 2023 dated November 19, 2025

Under Section 20, welfare fee is required to be levied on final payouts made to gig workers by aggregators or platforms. The present Government Order prescribes the applicable rates and caps for such welfare fee.

With effect from February 13, 2026, all platforms and aggregators operating in Karnataka shall levy welfare fee on each transaction payout to gig workers at the following rates

  • Ride-Hailing Services: 1% (Cap: ₹0.50 – 2W; ₹0.75 – 3W; ₹1.00 – 4W)
  • Food & Grocery Delivery (2W): 1% (Cap: ₹0.50)
  • Logistics Services: 1% (Cap: ₹0.50 – 2W; ₹0.75 – 3W; ₹1.00 – LCV; ₹1.50 – HCV)
  • E-Marketplace Services: 1% (Cap: ₹0.50 – 2W; ₹0.75 – 3W; ₹1.00 – LCV)
  • Professional Activity Providers: 1% (Cap: ₹1.50)

As per Rule 17(2), aggregators shall, within five working days from the end of each quarter, calculate, self-declare, and pay the welfare fee (excluding settled payments)

Until operationalization of the Payment and Welfare Fee Verification System (PWFVS), platforms may self-report quarterly payout details

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