SYLLABUS

GS 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation; Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

GS 3: Inclusive growth and issues arising from it. 

Context: Recently, the Telangana state Assembly passed the Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2026, seeking to regulate and ensure protection to gig and platform workers. 

About the Telangana Gig Workers Bill

• The main objective of the bill is to give legal recognition to gig workers in the digital economy and protect their rights, dignity, and livelihood.
• It addresses the problems faced by the gig and platform workers, like a lack of minimum wages, job security, health insurance, labour rights, grievance redressal system, or any other benefits.
• The bill is similar to those passed by four other states: Karnataka, Rajasthan, Jharkhand, and Bihar.

Key Provisions of the Bill

• Regulatory Compliance for Platforms:
  o Platform companies are required to periodically submit details and file electronic returns of customer transactions every three months, on which the government will levy 1–2% on the transactions.
  o 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.
• Provision for Social Security and Welfare Board: 
  o A 20-member welfare board for gig workers will be set up using the levy corpus to provide insurance, pension, and maternity benefits, with representation of women and persons with disabilities.
  o Aggregators, including delivery, ride-hailing, and service apps, will be required to deposit 1 to 2% of their transaction value into a state-managed welfare fund. A maximum of 5% of the fund can be used for the board’s operating expenses.
  o Every registered gig worker will be given a unique ID for direct access to Government Schemes.
• Grievance Redressal System: It introduces a strong grievance redressal system, creating platform-level committees and district-level complaint mechanisms to protect workers from sudden termination or payment stoppages
• Transparency: Platforms must clearly disclose salary and deduction details, and there can be no arbitrary use of algorithms that affect workers.

About the Gig Economy and Workers

• The gig economy is a market system characterised by the prevalence of short-term and flexible work arrangements, where organisations engage independent workers for specific tasks or projects.
• A gig worker refers to an individual who undertakes work or participates in income-generating activities outside the traditional employer–employee relationship, as defined under the Code on Social Security, 2020.
• It is witnessing rapid expansion, driven by digitalisation and increasing preference for flexible employment, with a growing number of workers entering gig-based roles.
• There are two types of Gig Workers:
  o Platform-Based Workers: Individuals whose work is mediated through online applications or digital platforms (e.g., Uber, Swiggy).
  o Non-Platform Gig Workers: Workers engaged outside digital platforms, including casual labourers and self-employed individuals in conventional sectors, working either part-time or full-time. 

Significance of the Gig Economy

• Employment Generation and Inclusivity: The gig economy creates large-scale employment opportunities, especially for youth, women, and low-skilled workers, enabling wider labour market participation.
• Flexibility and Work Autonomy: It offers flexible working hours and location independence, allowing workers to balance multiple income sources and personal commitments.
• Boost to Digital Economy: The expansion of platform-based work accelerates digitalisation and supports the growth of sectors such as e-commerce, ride-hailing, and online services.
• Cost Efficiency for Businesses: Firms benefit from reduced labour costs and operational flexibility by hiring workers on a task-based or short-term basis instead of maintaining a permanent workforce.
• Scope for Innovation: The gig economy promotes self-employment and micro-entrepreneurship, encouraging innovation and the development of new service models.

Challenges Before Gig Workers

• Lack of Social Security: Gig workers often lack access to benefits such as health insurance, pensions, and paid leave, leading to income insecurity.
• Income Instability: Earnings are irregular and depend on demand, platform algorithms, and ratings, making financial planning difficult.
• Absence of Job Security: Workers can be easily deactivated or removed from platforms without prior notice, reflecting weak contractual protection.
• Algorithmic Control and Opaqueness: Work allocation, pricing, and ratings are governed by opaque algorithms, limiting transparency and worker autonomy.
• Limited Legal Protection: Gig workers fall outside traditional labour laws, resulting in inadequate grievance redressal and weak bargaining power.
• Gender and Social Gaps: The gig economy often reinforces existing inequalities, with women and marginalised groups concentrated in low-paying, insecure work and facing barriers like safety concerns and the digital divide.
• Lack of Collective Bargaining Power: Gig workers operate individually and lack unionisation, limiting their ability to negotiate better wages, working conditions, or dispute resolution mechanisms.

Major Government Initiatives Addressing the Gig Economy

• Code on Social Security, 2020: It recognises gig and platform workers and provides for social security schemes; however, enforceable norms on wages, working conditions, grievance redressal, and algorithmic transparency remain limited or inadequately implemented.
• National Social Security Board: It has been constituted under the 'Code on Social Security, 2020' to oversee and coordinate the implementation of social security measures for workers in both the organized and unorganized sectors (including gig workers), and to recommend appropriate welfare schemes.
• e-SHRAM Portal (launched in 2021): It serves as a national database for unorganised workers, including gig workers, enabling access to government welfare schemes and social security benefits. As of December 2025, over 31.2 crore workers are registered on the portal.
• State-Level Initiatives: Various states have undertaken measures to extend social security and welfare support to gig workers
  o Rajasthan: It was the first state to pass the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, which mandates registration of gig workers, setting up of a welfare board, with one-third of its members to be women.
  o Bihar: The Bihar Platform-Based Gig Workers (Registration, Social Security and Welfare) Act, 2025, provides social security benefits such as provident fund, insurance, maternity support, accident cover, and old-age protection through a welfare fund, along with provisions for minimum wages and grievance redressal.
  o Karnataka: The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, provides a legal framework for the constitution of a welfare board. It has provisions like social security, insurance, and minimum wages.
  o Jharkhand: The Jharkhand Platform-Based Gig Workers (Registration and Welfare) Act provides for registration of all gig workers, with an ID being provided, social security benefits and grievance redressal.

Sources
The Hindu
Indian Express
Indian Express