Hyderabad, India — November 8, 2025: In a groundbreaking move for India’s labor ecosystem, the Telangana government is set to introduce the Telangana Gig and Platform Workers (Registration, Social Security & Welfare) Act, 2025, making it the first state in the country to roll out a comprehensive welfare framework for gig and platform-based workers.
The proposed law, currently in its final drafting stage, aims to bring formal recognition, social security, and welfare benefits to lakhs of workers engaged through digital platforms such as Swiggy, Zomato, Ola, Uber, Blinkit, and Urban Company — a segment long operating in the informal economy.
What the New Law Proposes
According to officials in the state’s Labour and Employment Department, the Act will:
- Create a dedicated registry of all gig and platform workers in Telangana, ensuring official recognition and data transparency.
- Establish a Gig Workers’ Welfare Board, which will manage social security schemes and insurance funds.
- Mandate contributions from aggregators/platforms to a welfare fund aimed at providing health, accident, and life insurance coverage.
- Facilitate access to skill development programs, micro-credit support, and financial literacy initiatives.
While the bill focuses on registration, social protection, and welfare, it does not mandate a fixed monthly wage, maintaining the flexible nature of gig work but ensuring minimum safety nets for workers.
Why Telangana Leads the Way
Telangana has emerged as one of India’s most progressive states in promoting worker welfare within the new-age digital economy. The initiative is being coordinated by the Telangana State Labour Department in partnership with T-Hub, the Telangana Gig and Platform Workers Union (TGPWU), and leading think tanks working on labor rights.
According to state officials, the framework draws inspiration from international models like the UK’s “Worker Status” reforms and California’s AB5 legislation, while adapting to Indian realities such as multiple-platform engagement and fluctuating earnings.
The Scale of Gig Work in Telangana
Hyderabad alone is estimated to host over 2.3 lakh active gig workers, including food delivery agents, cab drivers, warehouse workers, and freelance professionals. The gig economy has become a critical part of the city’s service infrastructure, yet most workers lack formal contracts, insurance, or retirement benefits.
“We want to strike a balance between flexibility and fairness. Gig work is the future of employment, but it must not come at the cost of worker dignity,” said a senior official from the Telangana Labour Department.
Industry and Worker Reactions
- Worker Unions: The Telangana Gig and Platform Workers Union (TGPWU) welcomed the move, stating that it “sets a new precedent for worker recognition and rights.”
- Industry Platforms: Several companies expressed cautious optimism, calling for clarity on contribution rates and the administrative mechanism of the welfare fund.
- Policy Experts: Analysts view the initiative as a test case for other states, particularly Karnataka, Maharashtra, and Delhi, which are exploring similar frameworks.
Potential Impacts
- Social Security Inclusion: Gig workers may finally receive health and accident insurance, enabling financial stability in emergencies.
- Formalization of Informal Labor: The registration drive will provide the first comprehensive database of gig workers in India.
- Corporate Accountability: Platforms will have to share responsibility in social protection — a shift from the “aggregator only” model.
- Boost to Worker Morale: Recognized workers can access credit, training, and welfare benefits through government channels.
- Policy Replication: If successful, the Telangana model could guide national-level legislation under the Ministry of Labour.
A Step Toward the Future of Work
With the digital economy reshaping employment worldwide, Telangana’s proactive step represents an evolution in India’s labor governance. Experts say it bridges the gap between innovation and inclusion — ensuring that technological disruption does not leave the workforce behind.
“Telangana is redefining the social contract for the platform economy,” said Professor Ritu Verma, a labor policy researcher. “This could well become India’s blueprint for fair digital work.”
The Telangana Gig and Platform Workers Act, 2025 is expected to be tabled in the winter session of the state legislature, following public consultations and cabinet approval.