The Karnataka government is likely to introduce a comprehensive tiered or slab-based structure to collect welfare fees from aggregators to support the Karnataka Gig Workers Social Security and Welfare Fund. 

According to government officials, the state labour department is set to finalise specific welfare fee rates for different categories of aggregators that take into account different payout models deployed for gig workers by such platforms. 

Sources indicate that software-as-a-service (SaaS) models deployed by platforms like ONDC and Namma Yatri, which charge subscription fees rather than taking commissions from transactions, could be levied lower welfare fee rates of 1-2%. Commission-based aggregators, including Swiggy, Zomato, Zepto, Ola, Uber, Amazon, and Flipkart, could face higher welfare fees, with rates scaling up to 5%, based on their revenue models and transaction volumes.

The rates will operate within the framework established by the Karnataka Platform-based Gig Workers Ordinance 2025, which received the assent of governor Thaawarchand Gehlot on May 27. The ordinance requires aggregators to pay between 1% and 5% of the payout made by the platform to the gig worker in each transaction.

Crucially, Section 20(2) of the ordinance empowers the state government to “specify through a notification 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.”

The ordinance covers eight categories of services: Ride sharing, food and grocery delivery, logistics, e-marketplaces (B2B/B2C), professional services, healthcare, travel and hospitality, and content and media services.

While the state government has six months from the ordinance coming into force to notify specific rates for different aggregator categories, sources said the framework development, involving at least 26 stakeholders including the International Labour Organisation, NASSCOM and the Confederation of Indian Industry, is in advanced stages. The government could notify the draft rules for public consultation, which include slab-based rates, as early as Monday, they added.