The Government of Karnataka, on February 16, 2026, notified regarding the collection of the gig workers welfare fee.
The following has been stated namely: -
• The welfare fee is levied on the final payouts made to the gig workers in each of the gig work that they undertake through the digital intermediary.
• Section 20 from the Act is reproduced hereunder: “20. Gig Worker’s Welfare Fee.- (1) There shall be charged, from an aggregator or platform, a welfare fee known as the Platform Based Gig Workers Welfare Fee, which shall be not less than one percent but not more than five percent of the payout to the platform based Gig worker in each transaction as may be notified by the State Government within six months of the Act coming into force.
• The State Government shall specify through a notification a different percentage on the payout, with or without a cap on the Gig worker welfare fee on each transaction, for different categories of aggregator or platform as specified in the Schedule.
• Such fee shall be collected by the State Government in such manner and within such time as may be prescribed.
• The aggregator or platform shall deposit the welfare fee levied under this Act, at the end of each quarter, in such manner as may be prescribed.”
Detailed notification is attached below.
