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Telangana government to table gig workers’ welfare Bill in the upcoming budget session

Chief Minister A Revanth Reddy’s government is expected to table the Bill during the Budget session. This move would fulfil a promise made by the Congress party during the Assembly elections.

Published Feb 22, 2026 | 10:44 AMUpdated Feb 22, 2026 | 10:44 AM

gig workers

Synopsis: The Telangana government is preparing to introduce the Telangana Gig and Platform Workers (Registration, Social Security, and Welfare) Bill, 2025, in the upcoming Budget session of the state Assembly. The proposed legislation seeks to safeguard the rights of over four lakh gig workers across Telangana.

The Telangana government is preparing to introduce a long-awaited Bill to protect gig and platform workers in the upcoming Budget session of the state Assembly.

The proposed legislation seeks to safeguard the rights of over four lakh gig workers across Telangana. These include delivery partners, ride-hailing drivers, and logistics workers. For many of them, work is uncertain, and income fluctuates. The new law aims to plug these gaps and bring them into the welfare net.

The draft legislation, titled the Telangana Gig and Platform Workers (Registration, Social Security, and Welfare) Bill, 2025, received Cabinet approval in November 2025. It marked a key milestone after months of back-and-forth consultations. Officials say the government is now ready to take the bull by the horns.

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Promised ahead of elections

Chief Minister A Revanth Reddy’s government is expected to table the Bill during the Budget session. This move would fulfil a promise made by the Congress party during the Assembly elections. Party leaders had assured gig workers that they would not be left high and dry.

According to sources, Congress leader Rahul Gandhi recently reviewed the proposal during an interaction with the chief minister and his Cabinet colleagues in New Delhi. He is learnt to have urged the state to fast-track the legislation. He reportedly discussed the broad contours of the policy and emphasised that Telangana should lead from the front in protecting gig workers’ interests, by walking the talk.

The draft was first placed in the public domain in April 2025. The Labour Department invited suggestions from stakeholders until late May. Officials received 67 suggestions. Many of them were incorporated into the final version. After revisions, the Cabinet cleared the Bill on 18 November 2025.

Initially, the government had planned to promulgate an ordinance and later ratify it in the winter session. However, procedural delays pushed the timeline. The Bill is now set to be introduced in the 2026 Budget session.

Labour Minister Vivek Venkatswamy has said the law will address core issues. These include algorithmic transparency, fair remuneration, and social security coverage. He said Telangana intends to set the benchmark in gig economy regulation.

Mandatory registration

At the heart of the draft law is mandatory registration. All gig and platform workers must register with the government. Each worker will receive a unique ID. This will help create a comprehensive state database. Aggregator platforms will be required to facilitate this process. Formal registration ensures workers are not invisible anymore.

The Bill also proposes the creation of the Telangana Gig and Platform Workers Welfare Board. This will be a tripartite body with representatives from the government, workers’ unions, and aggregator companies. The Board will oversee welfare schemes, manage funds, and resolve disputes. It will serve as the nerve centre of implementation.

To fund welfare measures, the Bill proposes a one to two percent cess on each transaction processed by aggregator platforms. The Welfare Fund will also receive government grants and contributions from companies. The aim is to ensure steady financing rather than hand-to-mouth arrangements.

The draft outlines eight fundamental rights for gig workers. These include the Right to Social Security, covering health insurance, accident insurance, pension, and maternity benefits.

The Right to Fair Wages seeks to prevent arbitrary deductions and ensure minimum earnings. Workers will also have the Right to Form Unions and engage in collective bargaining.

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Income transparency

Income transparency is another key pillar. Platforms must clearly disclose payment structures. Workers should know how much they earn and how incentives are calculated. The Bill also stresses safe working conditions and reasonable working hours.

One of the standout provisions relates to algorithmic transparency. Platforms will be required to disclose how automated systems allocate tasks and assess performance.

They must explain how ratings are calculated. If a worker is to be deactivated, the company must issue a written notice at least seven days in advance. Exceptions apply only in cases of serious misconduct. This clause aims to curb arbitrary terminations.

Grievance redressal has also been given priority. Aggregators employing more than 100 workers must set up Internal Dispute Resolution Committees. These committees will handle complaints related to delayed payments, unfair suspensions, and fraudulent practices. In addition, the government will appoint Grievance Redressal Officers to deal with broader entitlement-related issues.

According to sources, non-compliance by platforms could attract penalties. These may include fines or operational restrictions. The specific penalty framework will be detailed in the rules after the law is enacted.

The proposed legislation casts a wide net, covering food delivery executives, cab drivers, warehouse handlers, and even home-based platform workers.

(Edited by Muhammed Fazil.)

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