The Karnataka government is set to operationalise its long-awaited social security framework for gig workers within the next week, with aggregator platforms to be charged a uniform welfare fee of 1–1.5% on a per-transaction basis, Labour Minister Santosh Lad said. The labour department is likely to notify a uniform welfare fee of 1–1.5% on a per-transaction basis for aggregator platforms.
Once notified, the fee will be collected from platforms and channelled into the Karnataka Gig Workers’ Social Security and Welfare Fund after the constitution of the gig workers’ welfare board, officials said. The move marks one of the first attempts by an Indian state to translate gig worker welfare legislation into an operational funding mechanism.
Sources close to the development said that the framework has not clarified who will bear the cost.
Under the Karnataka Platform-based Gig Workers (Social Security and Welfare) Act, the state is empowered to levy a welfare fee ranging from 1% to 5% on aggregators on a per-transaction basis.
The Act also allows the government to prescribe different fee rates for different categories of platforms and to impose caps on the contribution per transaction. However, the state has opted for a uniform rate following consultations with platforms.
“We have discussed the issue with stakeholders, who suggested a welfare fee in the range of 1–1.5%. The notification will be issued within a week,” said Lad, adding that the fee will be charged on every transaction routed through aggregator platforms.
While the framework mandates that the fee be collected from aggregators, it remains unclear whether platforms will absorb the cost or pass it on to consumers through higher prices or delivery charges. Industry executives have previously flagged concerns that additional levies could further strain unit economics in a sector already operating on thin margins.
The welfare fund will also receive contributions from individual gig workers, along with grants-in-aid from the Union and state governments. The fund is intended to finance social security benefits such as health cover, accident insurance and other welfare measures for platform-based workers.
Published on January 7, 2026
