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Telangana Passes Law to Register Gig Workers and Fund Welfare With 1–2% App Levy

The measure sets a 1–2% fee on app transactions to fund insurance, pensions, maternity support for registered gig workers.

Overview

  • The Telangana Assembly, which passed the Bill on Monday, created a legal framework for platform workers that the state estimates will cover about four lakh riders and drivers.
  • A new Social Security and Welfare Board will register workers, issue unique IDs, and open direct access to government schemes.
  • Aggregator platforms must pay 1–2% of each transaction into a state fund and file electronic returns every three months, with fines that escalate from Rs 50,000 to five times unpaid dues for repeat breaches.
  • The law requires company dispute panels and district grievance desks, full clarity on order allocation and pay calculations, and penalties for arbitrary rate cuts or sudden deactivation.
  • The next phase turns to rules and enforcement, as other states with similar laws have struggled to implement them and only Jharkhand has operationalised its framework so far.