The levy, effective immediately, aims to fund social security benefits for platform-based workers, with sector-specific transaction caps
The Karnataka government introduced a 1 per cent welfare levy on transactions carried out through aggregator platforms, aimed at funding social security programs for gig economy workers. The move comes under the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, which allows a levy ranging from 1 to 5 per cent of worker payouts per transaction. The state has opted for the minimum rate of 1 per cent, which is effective immediately and will remain in place until further notice.
According to media reports, the per-transaction cap differs across sectors. Food and grocery delivery platforms, including Swiggy, Zomato, Blinkit, Zepto, and BigBasket, will pay up to Rs 0.5 per transaction. Ride-hailing services such as Rapido, Namma Yatri, and Uber will be charged Rs 0.5 for two-wheelers, Rs 0.75 for three-wheelers, and Rs 1 for four-wheelers. Logistics companies, including Porter and Delhivery, will have caps of Rs 0.5 for two-wheelers, Rs 0.75 for three-wheelers, Rs 1 for light commercial vehicles, and Rs 1.5 for heavy commercial vehicles.
Ecommerce and marketplace logistics providers like e-kart and BlueDart will pay Rs 0.5 for two-wheelers, Rs 0.75 for three-wheelers, and Rs 1 for light commercial vehicles, while professional service providers such as Urban Company will face the highest cap of Rs 1.5 per transaction.
A government order published in the Gazette on February 13 mandates that all aggregator platforms must calculate the welfare fee, self-declare the amount, and remit payments within five working days from the end of each quarter. Certain payouts, including tips, ex gratia payments, event-based payments, referral bonuses, and incentives, are excluded from the levy. All collections will be processed through the Payment and Welfare Fee Verification System (PWFVS), a digital platform overseen by the Gig Workers Social Security Board, which will monitor both fee collection and its utilisation at the individual worker level. Until the PWFVS is fully operational, platforms are allowed to self-report quarterly payouts and corresponding welfare fees.
The Act defines an aggregator as a digital intermediary connecting buyers and sellers or service providers, including entities coordinating with one or more aggregators. Platforms are defined as electronic systems that organise paid work through automated or data-driven processes. “Payout” refers to the final payment made to gig workers for services rendered, while “welfare fee” refers to the levy charged under Section 20(1) of the Act.
(With input from media reports)
