On Monday, the Telangana state Assembly passed the Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2026. The legislation, which seeks to regulate gig and platform work and ensure protection of such gig workers, is similar to those passed by four other states: Karnataka, Rajasthan, Jharkhand, and Bihar. Here’s what to know.

Labour, Employment and Mines Minister Dr G Vivek Venkataswamy, who introduced the Bill, said the Congress-led government has brought this legislation to give legal recognition to gig workers in the digital economy and protect their rights, dignity, and livelihood. The minister said that the workers lacked minimum wages, job security, health insurance, labour rights, no grievance redressal system, or any other benefits.

As per the Bill, platform companies will have to submit details regularly and file electronic returns of transactions made by customers every three months. The government will recover a 1-2% levy on these transactions. Strict penalties have been prescribed for non-compliance: Rs 50,000 for the first violation, Rs 1 lakh for the second, Rs 1.5 lakh for the third, and up to five times the arrears thereafter.

A special welfare board will be constituted for gig workers using the corpus created by the government levy, which will provide for insurance, pension and maternity benefits. Every registered gig worker will be given a unique ID. A maximum of 5% of the fund can be used for the board’s operating expenses.

The Welfare Board will have 20 members, including representatives of gig worker aggregators, and will meet quarterly. Platform-level committees with special officers will be formed to resolve complaints quickly.

The Bill also mandates transparent policies: platforms must clearly disclose salary and deduction details, and there can be no arbitrary use of algorithms that affect workers.

Venkataswamy said that the government first discussed the problems of gig workers with unions and then prepared a draft bill, which was placed in the public domain for 30 days. Many complained that there is no transparency in deductions made by platforms from the worker’s payment. As many as 65 suggestions were received and incorporated.

The Bill is expected to benefit over 4 lakhs of delivery riders, cab drivers, and other platform workers across the state. Venkataswamy said that the framework is to ensure that gig workers are not denied social security, insurance, and proper working conditions.

Bills in other states

The legislation for gig workers in all five states focus on registration of workers, providing social security, health insurance, and welfare benefits.

Bihar has included Provident Fund, maternity benefits, and old age protection. Platforms have been asked to show more transparency in how they operate and pay the workers, and provide more clarity if money is being deducted for whatever reason.

Rajasthan was the first state to pass the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act on July 24, 2023, under the then Ashok Gehlot-led government. The law mandates registration of gig workers, setting up of a welfare board, with one-third of its members to be women. It also levies a fee on aggregators for a welfare fund meant to provide, among other things, health insurance and accident coverage, and imposes penalties of up to Rs 5 lakh for a first offence and up to Rs 50 lakh for subsequent violations.

The Bihar Platform Based Gig Workers (Registration, Social Security and Welfare) Act, 2025, includes mandatory registration of gig workers above 16 years using Aadhaar, and the issuance of a digital or physical identity card. The Act provides for social security benefits, including provident fund, insurance, maternity benefits, accident insurance, and old-age protection, through a welfare fund. Other provisions include a minimum wage guarantee and grievance redressal mechanism.

The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, which came into effect last May, provides a legal framework for the constitution of a welfare board. It has provisions like social security, insurance, and minimum wages. The other provisions are similar to other states.

The Jharkhand Platform-Based Gig Workers (Registration and Welfare) Act, passed by the state Assembly in August last year, provides for registration of all gig workers, with an ID being provided, social security benefits and grievance redressal. The framework includes minimum wages, labour rights, and fair working conditions. The welfare board will be linked to the Labour Welfare Department’s Shramdaan Portal, enabling it to avail accident compensation, insurance, pensions, and other welfare schemes.

Stages of implementation

Of the Bills passed by Rajasthan, Jharkhand, Bihar, and Karnataka, only Jharkhand has been able to implement it as the others are stuck in negotiations and discussions.

One of the main challenges is deciding the fee to be levied on the aggregator. Karnataka has proposed 1-1.5%, and it is also grappling with framing the rules and regulations to ensure social security and welfare benefits including health insurance.

In Rajasthan, Gehlot was voted out in 2023 and the incumbent government has been dragging its feet. Last December, gig workers held protests across the state.

In Bihar, negotiations over social security, provident fund, maternity benefits did not progress much, stalling its implementation. The state saw protests by gig workers earlier this year.