Gig Workers Welfare Fee – Karnataka Government Order (13/02/2026)

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The Government of Karnataka, on February 13, 2026, mandates the collection of a Welfare Fee from aggregators and platforms to fund social security for gig workers.

  • The fee is levied on final payouts made to gig workers by platforms/aggregators.
  • As per Section 20, the welfare fee must be not less than 1% and not more than 5% of payouts, with specific rates notified by the State Government.
  • The Government Order dated 13 February 2026 enforces immediate collection of welfare fees at prescribed rates, until further orders.

Applicable Categories & Rates

CategoryModeWelfare FeeCap
Ride-Hailing2W1%₹ 0.50
Ride-Hailing3W1%₹ 0.75
Ride-Hailing4W1%₹ 1.00
Food & Grocery Delivery2W1%₹ 0.50
Logistics2W1%₹ 0.50
Logistics3W1%₹ 0.75
LogisticsLCV1%₹ 1.00
LogisticsHCV1%₹ 1.50
E-Marketplace2W1%₹ 0.50
E-Marketplace3W1%₹ 0.75
E-MarketplaceLCV1%₹ 1.00
Professional Activity ProvidersAny1%₹ 1.50

Compliance Mechanism

  • 1% Welfare Fee: Effective immediately, a 1% fee is applicable on all gig worker payouts, subject to transaction caps
  • Quarterly payment of welfare fee within 5 working days of quarter-end.
  • PWFVS Integration: All payouts must be mapped to the state’s Payment and Welfare Fee Verification System (PWFVS). Until the portal is fully operational, self-reporting is permitted.
  • Exclusions: Tips, ex-gratia/event-based/special payments, referral fees, incentives.
  • Bank details for remittance will be provided on the Labour Department website.

Applicable Employers’ Action Plan

  1. Mandatory Registration: Platforms must register with the Gig Workers Welfare Board within 45 days of the Act/Board’s commencement.
  2. Worker Database: Submit a machine-readable database of all onboarded gig workers within 45 days.
  3. Quarterly Remittance:
    • Calculate and self-declare the welfare fee within 5 working days of the end of each quarter.
    • Remit the amount through RBI-approved banking channels as per details on the Labour Department website. (Details awaited)
  4. Transparency & Contracts: Update worker contracts to include clear terms on payments and deductions, providing 14 days’ notice for any material changes.

Grievance Redressal: Establish an Internal Dispute Resolution Committee (IDRC) to handle worker grievances within 14–15 days.

GIG Workers Social Security FeeeDownload