Karnataka to Form Gig Workers’ Welfare Board with 1-1.5% Welfare Fee on Aggregators
January 26, 2026
The Karnataka government is moving forward with creating a Gig Workers’ Welfare Board. A committee will be formed by January 27 to finalize the plan. Labour Minister Santosh Lad confirmed the government will charge a welfare fee between 1% and 1.5% from aggregator platforms. The fee will differ across sectors, with cab and transport apps treated differently from food delivery and other platforms. It will be based on each aggregator's business model.
Mr. Lad said that the lower initial levy aims to build a steady welfare fund without burdening platforms. Meetings with major platforms considered all concerns before deciding the fee.
Under the Karnataka Platform based Gig Workers (Social Security and Welfare) Act, the welfare board will include 15 members. This includes five from the government (including the Labour Minister), four gig workers, four aggregators, and two from civil society. The government has finalized the member list.
Once contributions start, the board will check if funds meet social security needs. If not enough is collected, the welfare fee could be raised to a maximum of 5%. Fees will vary across platforms depending on scale, revenue, and operation methods.
Additionally, the Labour Department plans to publish draft state rules under key central labour codes by January 27. These rules will cover wages, industrial relations, workplace safety, and social security to create uniform standards across sectors.
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Tags:
Gig workers
Welfare Board
Aggregator Platforms
Welfare Fee
Karnataka government
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