Telangana: The Telangana government has moved to formally regulate platform-based employment after the Governor approved the Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2026, making the state the fifth in India to introduce dedicated legislation for gig workers. The approval, granted in Hyderabad, provides legal recognition to thousands of delivery partners, cab drivers, and other app-based workers, while creating a structured welfare system aimed at extending social security benefits.
The assent was given by Governor Shiv Pratap Shukla, clearing the Bill passed earlier by the Telangana Legislative Assembly. With this, Telangana joins Karnataka, Rajasthan, Bihar, and Jharkhand, which have already introduced similar laws to regulate platform-based labour and provide minimum welfare protections. The legislation is expected to benefit an estimated over four lakh gig workers in the state, according to government estimates.
The law establishes a Gig Workers Welfare Board, which will oversee registration, issue unique identification numbers to workers, and administer welfare schemes. Officials said the registration system is intended to bring gig workers under a formal state database, enabling them to access structured benefits such as insurance coverage, accident compensation, pension support, and maternity assistance.
A key feature of the legislation is the creation of a state-level welfare fund, financed through contributions from platform aggregators such as food delivery companies, ride-hailing services, and other app-based platforms. The law mandates that aggregators contribute between 1% and 2% of their transaction value into the fund. This mechanism is designed to ensure that companies benefiting from gig labour also contribute to worker welfare.
The Bill also provides for the establishment of a digital registration system and grievance redressal framework, allowing workers to register through a single platform and raise complaints related to payments, working conditions, or platform-related disputes. Officials said the system is intended to improve transparency and reduce dependence on informal dispute resolution mechanisms.
According to the provisions, aggregators will also be required to share worker data with the welfare board and update records periodically, ensuring continuous monitoring of employment conditions. Non-compliance may attract penalties, and the state government is expected to notify detailed rules for enforcement after stakeholder consultations.
The legislation comes amid rapid growth of the gig economy in urban centres like Hyderabad, where workers are engaged in food delivery, ride-hailing, logistics, and other platform-based services. However, labour experts have noted that gig workers often face challenges such as income instability, lack of formal contracts, absence of health insurance, and limited access to social security systems.
The Telangana Bill seeks to address these gaps by introducing formal recognition and welfare coverage, aligning with similar state-level efforts across India. Karnataka, Rajasthan, Bihar, and Jharkhand have already implemented comparable laws focused on registration, welfare funds, and social security benefits for gig workers.
Officials said the next step will involve framing operational rules, including the structure of the welfare board, contribution mechanisms, and implementation timelines. Once fully operational, the law is expected to significantly reshape the regulatory framework governing platform-based work in Telangana, particularly in urban employment sectors.
