Swiggy, Zomato to pay welfare fee to gig workers as Karnataka notifies 1% levy on aggregators

1% welfare fee and varying caps based on types of services and vehicles

Bengaluru: The Karnataka government notified the quantum of Gig workers’ welfare fee which different aggregator platforms must pay as a contribution to the gig workers’ welfare fund.

Following this, aggregator platforms such as Swiggy, Zomato, Ola, Uber and so on will have to pay the necessary welfare fee to the Gig workers’ board from February 13. The board is headed by Labour Minister Santosh S Lad.

The Government Order published in the Gazette on Feb 13 has specified different amounts of welfare fee for ride-hailing services, food and delivery and logistical services. While the basic welfare fee is a uniform 1% for all types of aggregators per transaction, the cap per transaction varies for different types of services and vehicles.

The government has imposed a cap of Rs 0.50 on aggregators providing food and delivery services (two-wheelers) such as Swiggy, Zomato and so on.

For aggregators such as Ola, Uber which cater to ride-hailing services, the cap is Rs 0.50 for two-wheelers, Rs 0.75 for three-wheelers and Rs 1 for four-wheelers.

For aggregators providing logistics services like Zepto, Blinkit and so on, the cap is Rs 0.50 for two-wheelers, Rs 0.75 for three-wheelers, Rs 1 for light commercial vehicles and Rs 1.5 for heavy commercial vehicles.

For e-market services, the cap is Rs 0.5 for two-wheelers, Rs 0.75 for three-wheelers and Rs 1 for four-wheelers. For professional activity providers, the cap is Rs 1.5.

The Karnataka Platform-based Gig Workers (Social Security and Welfare) Act, 2025 mandates the formation of a welfare board which will look into the social security of gig workers and a welfare fund that will provide the finance for these initiatives.

Contributions to the welfare fund will include the welfare fee paid by aggregators, the grants by state and central governments and individual contributions by gig workers.