How Karnataka's New Gig Worker Welfare Fee will Impact Swiggy, Zomato, Ola and Uber

Karnataka has introduced a welfare fee for platform gig workers, requiring aggregator companies to contribute funds per transaction from February 13. The fee is 1% of each transaction, subject to fixed caps based on service type and vehicle.

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Karnataka notifies welfare fee for platform gig workers

The Karnataka government has issued a notification introducing a welfare fee for platform-based gig workers. Under the order, aggregator companies must contribute a fixed welfare amount for each transaction to a dedicated gig worker welfare fund.

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Aggregators must contribute from February 13

Following this, aggregators like Swiggy, Zomato, Ola and Uber must pay the welfare fee to the gig workers' board. The rule came into effect on February 13. The welfare board that manages the fund is headed by Labour Minister Santosh S. Lad.

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Who must pay the welfare fee

The order applies to major aggregator platforms such as Swiggy, Zomato, Ola and Uber. These companies must pay the welfare fee for services carried out through their platforms.

The government said the base welfare fee will be 1% of each transaction. However, the actual amount charged will not exceed fixed caps based on the type of service and vehicle used.

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Fee for food delivery platforms

For food delivery services using two-wheelers, the government has fixed a maximum welfare fee of Rs 0.50 per transaction. This cap applies to platforms such as Swiggy and Zomato that operate bike-based delivery services.

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Fee for ride-hailing services

For ride-hailing services, the welfare fee varies by vehicle type. The government has set the following maximum charges:

Rs 0.50 for two-wheelers

Rs 0.75 for three-wheelers

Rs 1 for four-wheelers

These limits apply to ride services offered through companies such as Ola and Uber.

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Fee for logistics and quick commerce services

For logistics aggregator services, including platforms such as Zepto and Blinkit, different caps apply depending on vehicle size:

Rs 0.50 for two-wheelers

Rs 0.75 for three-wheelers

Rs 1 for light commercial vehicles (LCVs)

Rs 1.5 for heavy commercial vehicles (HCVs)

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Fee for e-market and professional services

For e-market and service platforms, the government has fixed these maximum welfare charges:

Rs 0.50 for two-wheelers

Rs 0.75 for three-wheelers

Rs 1 for four-wheelers

Rs 1.5 for professional activity providers

Officials said these caps ensure contributions remain small per transaction while building a steady welfare fund.

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Legal basis of the scheme

The welfare system has been introduced under the Karnataka Platform-Based Gig Workers Act, 2023. The law mandates the creation of a welfare board and a dedicated welfare fund for gig workers.

The fund will receive contributions from aggregator cess payments, government grants and worker contributions. The aim is to support social security measures for gig workers across the state.

What it means for gig workers

The government said the welfare fund is intended to support gig workers engaged in delivery, ride-hailing, logistics and digital services. The policy marks a step toward formal social security support for platform workers who often work without traditional employment benefits.