Bill to ensure social security and welfare for gig workers passed in Telangana Assembly

In a decisive move to protect the rapidly expanding gig workforce, the Telangana Assembly on Monday (March 30, 2026) passed The Telangana Platform Based Gig Workers (Registration, Social Security and Welfare) Bill, 2026, giving platform-based workers for the first time a clear social security framework and statutory safeguards.

Replying to the questions raised by the members regarding the Bills in the Assembly, Labour and Employment Minister G. Vivek Venkataswamy said the government had crafted the legislation after extensive consultations with workers and companies. He told the House that five rounds of meetings were held with aggregators and several direct interactions were conducted with gig workers to understand payment issues, order allotment concerns and lack of protection in emergencies. “If gig workers are not taken care of, penalties will be imposed on aggregators,” the Minister warned, adding that the government “firmly stands with the workers”.

The Bill establishes a Social Security and Welfare Board to register gig workers, with representation of women and persons with disabilities. Every worker will receive a unique identification number enabling direct access to government schemes.

In a major structural shift, aggregators — including delivery, ride-hailing and service apps — must contribute 1 to 2% of their transaction value to a State-managed welfare fund. The corpus will support insurance, accident cover, pension and maternity benefits.

The law also introduces a strong grievance redressal system, creating platform-level committees and district-level complaint mechanisms to protect workers from sudden termination or payment stoppages. For the first time, companies will be required to maintain full transparency in order allocation and payment calculations. Arbitrary rate cuts will attract penalties.