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Karnataka Notifies 1% Welfare Fee on Gig Platforms, Capped at ₹1.50 per Transaction Under New 2025 Act

Target:UPSC GS-IMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
17 Feb 2026
~2 min
Source: Indian Express
Key Data:1% transaction feeCap ₹1.50 per transactionAct passed August 2025Operationalized February 13, 2026
Bodies:Karnataka Gig Workers Welfare BoardKarnataka Labour Department
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What This Article Covers

1.Karnataka notified a gig workers' welfare fee on February 13, 2026, operationalizing its landmark 2025 Act.

2.The fee is a minimum of 1% of the transaction value, with per-transaction caps ranging from ₹0.50 to ₹1.50 depending on service and vehicle type.

3.This establishes a Gig Workers Welfare Fund, pioneering a state-led social security model for India's large informal gig economy.

The Big Picture
Prelims · HighMains · Medium

Karnataka operationalized India's first-of-its-kind social security levy for gig workers, mandating platforms to collect a 1% fee on transactions, capped at ₹1.50, to fund a dedicated welfare fund. This implements the 2025 state law, marking a significant step in formalizing social security for the platform-based workforce and creating a model other states may follow.

Exam Lens

Quick Exam Facts From News

StateKarnataka
Act NotifiedKarnataka Platform-Based Gig Workers (Social Security and Welfare) Act
Welfare Fee (Minimum)1% of transaction
Maximum Cap per Transaction₹1.50
Operational DateFebruary 13, 2026
Governing BoardKarnataka Gig Workers Welfare Board

1-Minute Revision

  • ›State: Karnataka
  • ›Act Notified: Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act
  • ›Target this Data: Welfare fee is a minimum of 1% of transaction, capped at ₹1.50 per transaction.
  • ›Target this Nodal Body: Karnataka Gig Workers Welfare Board (fixes the fee amount).
  • ›Target this Legal Point: Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025.

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Q1Static LinkageMedium

Under which List of the Seventh Schedule of the Indian Constitution does the subject of 'Labour welfare' primarily fall?

Q2Statement-basedHard

Consider the following statements regarding Karnataka's new welfare fee for gig workers:

1. The fee is levied at a flat rate of 5% of the transaction value for all services.

2. The collected fees are directed to a dedicated 'Gig Workers Welfare Fund'.

3. The Karnataka Platform-Based Gig Workers Act was passed by the state legislature in 2025.

Which of the statements given above is/are correct?

Q3Data-centricEasy

According to the notification, what is the maximum cap (in ₹) set for the welfare fee on a single transaction involving a heavy commercial vehicle used in logistics?

Q4Application/ImpactMedium

What is the primary objective of Karnataka's newly notified welfare fee on gig economy platforms?

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