The Telangana government has passed the Telangana Platform-Based Gig Workers Welfare Bill, 2026, marking a major step toward regulating the state’s growing gig economy and improving working conditions for app-based workers.
The law aims to provide social security and legal protection to workers engaged in services such as ride-hailing, food delivery, and logistics. A central feature of the bill is the creation of a Gig Workers Welfare Board, which will oversee worker registration, welfare schemes, and dispute resolution.
Under the legislation, both gig workers and platform companies must register with authorities. A dedicated welfare fund will be set up, financed through contributions from aggregators and other sources, to provide benefits like insurance and financial assistance. The bill also mandates transparency in platform algorithms, ensuring workers are informed about how tasks, ratings, and incentives are determined.
Additionally, it introduces safeguards such as timely payments, fair termination policies, and grievance redressed mechanisms. Penalties have been outlined for companies that fail to comply.
With this move, Telangana joins a few Indian states in formalising the gig economy, setting a precedent for stronger labour protections in the digital age.