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Karnataka Orders Gig Platforms to Begin 1% Welfare Fee Payments Under 2025 Act

Aggregators face quarterly self-declaration with five‑day remittance deadlines under vehicle‑specific caps pending rollout of the verification system.

Overview

  • An official order dated February 13, 2026 requires platforms operating in Karnataka to start debiting the welfare fee on every payout made through digital intermediaries.
  • The Act permits a 1%–5% levy, with the state fixing a 1% baseline and per‑transaction caps that top out at Rs 1.50 across categories.
  • Ride‑hailing fees are capped at Rs 0.50 for two‑wheelers, Rs 0.75 for three‑wheelers and Rs 1 for four‑wheelers, while food and grocery delivery on two‑wheelers is capped at Rs 0.50.
  • Logistics and e‑marketplace services follow vehicle‑based caps up to Rs 1 for light commercial vehicles and Rs 1.50 for heavy commercial vehicles, with professional service platforms capped at Rs 1.50.
  • Bank details for remittances will be posted by the Labour Department, and until the Payment and Welfare Fee Verification System is operational, platforms may submit quarterly self-reports of gig worker payouts.