The Karnataka government has set the welfare fee at 1% per transaction from aggregator platforms for gig workers under the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025. This fee will support social security for platform-based workers in the state. The government chose the lower 1% rate instead of the possible 1-5% range. However, the maximum fee per transaction is capped differently for various services: - Food and grocery platforms like Swiggy, Zomato, Blinkit, Zepto, and BigBasket have a cap of ₹0.5. - Ride-hailing services such as Rapido, Namma Yatri, and Uber have caps of ₹0.5 for two-wheelers, ₹0.75 for three-wheelers, and ₹1 for four-wheelers. - Logistics companies like Porter face caps of ₹0.5 (two-wheelers), ₹0.75 (three-wheelers), ₹1 (light commercial vehicles), and ₹1.5 (heavy commercial vehicles). - E-marketplaces have caps of ₹0.5, ₹0.75, and ₹1 for two-wheelers, three-wheelers, and light commercial vehicles respectively. - Professional activity providers such as Urban Company have the highest cap of ₹1.5 per transaction. A Government Order published on February 13 requires aggregators to self-declare the welfare fee within five working days after each quarter and pay it to the state government. The payments will be recorded in a Payment and Welfare Fee Verification System (PWFVS) overseen by the Gig Workers Social Security Board. The welfare fee collection and spending details will be available publicly on the government portal. Bank details for payments will be posted on the Labour Department’s website. This move aims to ensure better social security coverage for gig workers across Karnataka's booming platform economy.