So I understand that an individual miner in a pool gets paid based on their hashrate. But my question is, what about the Bitcoin transaction fee? When the pool pays the miner, who is paying that fee to transfer the funds from the pool to the individual person?
The sender always pays the transaction fee, so it is the mining pool operators that pay the transaction fee. Of course since they control a mining pool, the mining pool operator can just have their pool mine the transaction and thus not have to pay any transaction fees. This is a fairly common occurrence.