Announcement of 1% welfare fee on transactions involving platform-based gig workers
- February 13, 2026
- Posted by: AscentHR
- Categories: Karnataka, Notification
According to section 20 of the Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025, an aggregator or platform is required to pay a welfare fee, referred to as the Platform Based Gig Workers Welfare Fee, which must not be less than 1% and not more than 5% of the payout to platform-based gig workers for each transaction.
In line with this regulation, the Government of Karnataka, through GO no. LD 413 LET 2023, dated 13th February 2026, has officially notified a 1% welfare fee on transactions for platform-based gig workers. This fee will take effect from the date of the Order, which is 13th February 2026.
“Aggregator” is a digital intermediary for a buyer of goods or user of services to connect with the seller or the service provider, and includes any entity that coordinates with one or more aggregators for providing the services. (Example: Swiggy, Zomato, Ola, Uber).
“Gig worker” is a person who performs work or participates in a work arrangement that results in a given rate of payment, based on terms and conditions laid down in such a contract and includes all piece rate work, and whose work is sourced through a platform, in the services specified in the schedule.
Please refer below to the government order:
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