Telangana Cabinet approves gig workers bill; will bring 4.2L workforce under social security framework

Hyderabad: The Cabinet has approved the Telangana Gig Platform Workers Registration, Social Security, and Welfare Bill.

Under the new bill, nearly 4.2 lakh gig workers will be brought under a structured social security framework for the first time in the state.

The Bill, which will be introduced during the upcoming Assembly session, seeks to ensure job security, insurance, fair wages, transparency in algorithmic decisions, and welfare support.

Tripartite board, mandatory registration

Labour Minister Gaddam Vivek Venkataswamy, briefing the media after the Cabinet meeting chaired by Chief Minister A. Revanth Reddy said the government is committed to “doing justice to gig workers” who work without job security or bargaining power.

A 20-member Social Security and Welfare Board will be formed with representatives from gig workers' unions, aggregators, government officials, civil society, and technical experts.

The Board, with a three-year tenure, will be headquartered in Hyderabad and will frame operational guidelines for the new law.

The Bill mandates Registration of all gig workers and creation of a unique ID for each worker, mandatory registration of aggregators within 45 days, sharing of worker data by platforms within 60 days, and a tripartite mechanism to monitor welfare and dispute resolution.

Welfare fund and Minimum wage assurance

A dedicated Gig Workers Welfare Fund will be set up, financed through a 1–2% welfare fee on aggregator payouts, government grants, CSR contributions unique to Telangana, Public and private donations, and administrative expenses of the fund are capped at 5% to ensure fiscal discipline.

Under the proposed law, gig workers will be entitled to at least the state’s minimum wage, whether calculated per hour or on a piece-rate basis. They will also receive 14 days’ notice for any changes to their contract and seven days’ notice for termination, except in cases involving misconduct.

Transparency in Algorithms and Fair Practices

In a first-of-its-kind provision, the Bill requires platform owners to clearly disclose how algorithms affect job assignments, incentive structures, and worker ratings. This information must be provided in a language that workers understand, addressing long-standing concerns about opaque systems that influence earnings and work availability.

A Digital Welfare Fee Verification System (WFFVS) will be set up to track aggregator contributions transparently, with results made public. Penalties for failure to pay the welfare fee will range from ₹50,000 for the first offence to up to five times the overdue amount for repeated violations.

Grievance Redressal and Dispute Resolution

A government-appointed Grievance Redressal Officer will oversee dispute settlement. Platforms employing over 100 workers must form an internal dispute resolution committee, while appeals can be escalated to the Deputy Commissioner.

Background: Telangana’s Push for Gig Worker Security

Chief Minister Revanth Reddy had earlier declared that Telangana aims to create a model legislation for the country, ensuring safety and dignity for gig workers engaged in food delivery, transport, logistics, and home services. The draft bill was uploaded online for public feedback in April.

Although the government initially planned to implement the law on May 1 (International Labour Day), finalisation took longer due to multiple revisions.

The state had already taken a pioneering step on December 30, 2023, by providing Rs 5 lakh accidental insurance for gig and platform workers, making Telangana the first in the country to do so.