Telangana gig workers bill approved by Cabinet
Hyderabad: The Telangana Cabinet approved the Telangana gig workers bill, granting legal recognition and welfare protections to nearly 3 lakh platform workers across the state.
The proposed legislation, titled the Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2025, was drafted by the Labour, Employment Training & Factories Department after consultations with stakeholders and the Law Department. The move followed the Chief Minister’s announcement during an interaction with gig workers on 23-12-2024.
According to a NITI Aayog estimate, gig workers in Telangana are engaged in transport, delivery, home services, and logistics. They often work 10–12 hours daily without job security, insurance, or stable income. Moreover, fluctuating commissions and opaque algorithms affect their earnings and ratings.
The bill addresses the absence of a statutory system for social security, grievance redressal, and worker registration. It also seeks to fill gaps left by the Code on Social Security, 2020, which is yet to be implemented fully.
The legislation introduces mandatory registration for both workers and aggregators. Workers can self-register, while platforms must share worker data within 60 days and complete their own registration within 45 days.
Key provisions of Telangana gig workers bill
The Telangana gig workers bill establishes a 20-member Social Security and Welfare Board chaired by the Labour Minister. The board will include representatives from government, platforms, workers, and civil society, with a tenure of three years.
Further, the bill mandates transparency in algorithmic systems. Platforms must disclose how tasks, incentives, and ratings are determined. They must also communicate decisions in a language understood by workers.
A dedicated welfare fund will be created through aggregator contributions, government grants, CSR funds, and donations. The fund will support benefits such as accidental death relief, health coverage, and financial assistance for workers.
The law also introduces work security measures. Platforms must provide 14 days’ notice for contract changes and seven days’ notice before termination, except in misconduct cases.
For dispute resolution, the government will appoint grievance officers, while larger platforms must set up internal committees. An appellate mechanism will function at the Deputy Commissioner level.
Additionally, a digital Welfare Fee Verification System will track contributions and ensure transparency through public disclosure.
Penalties have been defined for non-payment of welfare fees, starting at ₹50,000 for the first offence and increasing for repeated violations.
Compared to other states, Telangana’s approach is more comprehensive. Rajasthan and Jharkhand have passed laws but lack implementation rules, while Karnataka’s law excludes CSR funding. Tamil Nadu covers gig workers under an existing welfare board without a dedicated law.
The Telangana gig workers bill positions the state as a frontrunner in regulating platform-based labour while improving social protection and formalising the sector.
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