New Delhi, June 8 -- The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, which Governor Thawarchand Gehlot approved on 27 May, marks a major regulatory shift.

It mandates that digital platforms-from food-delivery apps to ride-hailing platforms-contribute between 1% and 5% of each transaction to a state-run welfare fund. This is aimed at improving protections for gig workers across the board.

But what will this additional cost mean for platforms, gig workers, and consumers, and will it hamper the state's gig economy? Mint explains.

Legal and policy experts said the cost was likely to be passed on to consumers. Platforms already charge users various fees over and above the cost of the service, includin...