Swiggy, Zomato and Others in Focus as Karnataka Aggregators to Pay 1% Commission for Welfare of Gig Workers

Karnataka has introduced a mandatory fee of 1% of commission for platform‑based aggregators to fund a welfare scheme that will cover roughly 5,00,000 gig workers across the state. 

Fee Structure and Expected Revenue 

The fee is capped at ₹0.50 for certain models, ₹0.75 for others and ₹1 for the highest‑earning platforms. This structure is designed to limit the impact on smaller players while ensuring a steady inflow of resources.  

The government projects annual collections between ₹250 crore and ₹300 crore, which will be directed to a dedicated welfare fund. 

Governance and Board Management 

A 16‑member Gig Workers Welfare Board, chaired by the labour minister, will oversee the fund. Aggregators must remit the weekly fee to the board’s designated bank account.  

The board will also receive detailed data on gig workers from the platforms to facilitate enrolment in the social security net. 

Karnataka serves as a major hub for the gig economy, hosting a diverse range of app-based platforms such as Amazon, Zomato, Uber, Ola, Meesho, Porter, Swiggy and Blinkit. Together, these companies employ a workforce of thousands of gig partners across the state. 

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Impact on Gig Workers 

The scheme aims to benefit approximately 5,00,000 gig workers, including 2,75,000 in Bengaluru, engaged in ride‑hailing, e‑commerce and food delivery.   

Funds will support social security measures, health benefits and other welfare initiatives as outlined in the Karnataka Platform‑based Gig Workers (Social Security & Welfare) Act, 2025. 

Implementation Timeline and Technology 

The labour department is collaborating with the International Institute of Information Technology Bangalore and the Azim Premji Foundation to develop a software prototype for fee verification and payment tracking.  

A formal notification on the fee is expected within the next two days, and the first board meeting is slated for early August. 

Conclusion 

Karnataka’s mandatory 1% commission fee for aggregators is set to generate up to ₹300 crore annually, creating a welfare fund for 5,00,000 gig workers. The initiative is governed by a 16‑member board and supported by a technology platform to ensure transparent collection and distribution. 

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