Relief for lakhs of gig workers as Telangana Assembly passes welfare bill
The Bill mandates platform companies to regularly submit details of gig workers and file electronic returns every three months
By - Sistla Dakshina Murthy
Representational Image
Hyderabad: The Telangana Assembly on Monday passed the Telangana Platform-Based Gig Workers Registration, Social Security and Welfare Bill, 2026, aiming to pave the way for a structured social security framework for lakhs of platform-based workers across the State.
Legal recognition and protection for gig workers
Introducing the Bill, Labour, Employment and Mines Minister G Vivek Venkataswamy said the legislation seeks to formally recognise gig workers in the digital economy and safeguard their rights, dignity and livelihoods.
He noted that the move would bring delivery personnel, cab drivers and other platform-based workers under a defined legal framework, ensuring accountability from aggregator companies.
Mandatory registration and compliance norms
The Bill mandates platform companies to regularly submit details of gig workers and file electronic returns every three months.
Strict penalties have been proposed for violations. Companies will face a fine of Rs 50,000 for the first offence, which may go up to Rs 1.5 lakh for repeated violations. In cases of continued non-compliance, penalties could extend up to five times the arrears.
Welfare board and unique ID for workers
A key feature of the legislation is the establishment of a dedicated Welfare Board comprising 20 members, including representatives from aggregator platforms.
Each registered gig worker will be issued a unique identification number to streamline access to benefits and services.
The Board is expected to meet annually, while platform-level committees with designated officers will be formed to ensure quicker grievance redressal.
Welfare fund with platform levy
The Bill proposes the creation of a welfare fund through a 1–2 per cent levy on platform transactions.
This fund will be used to provide social security benefits such as insurance, pension and maternity support. Up to 5 per cent of the fund may be utilised for administrative expenses.
Transparency and worker safeguards
The legislation also emphasises transparency in platform operations. Companies will be required to clearly disclose payment structures and deductions.
It further seeks to prevent arbitrary algorithm-based decisions that could negatively impact workers, ensuring greater fairness in digital employment practices.
‘Consultations shaped the legislation’
The Minister informed the House that the Bill was drafted after extensive consultations with gig worker unions and other stakeholders.
The draft was placed in the public domain for 30 days, during which 65 suggestions were received and incorporated. He added that he held multiple meetings with unions to address their concerns.
A boost for the digital workforce
Describing gig workers as an integral part of the modern economy, the Minister said the Bill aims to provide them with long-overdue social security and institutional support.
Once implemented, the legislation is expected to benefit lakhs of gig workers across Telangana, marking a significant policy shift in the regulation of platform-based employment.
