Telangana Introduces Sweeping Labour Reforms, Bans Cash Wages

Telangana bans cash wage payments, mandates digital transfers, and introduces minimum wage protections for gig workers, increasing wages across skill levels. | India News

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The Telangana government has introduced a new labour governance framework, banning payment of wages in cash and introducing minimum wage protection for gig and platform workers across the state.

The changes, which came into effect from June 1, include a uniform wage structure across sectors, revised minimum wages by skill level and location, and expanded protections to categories of workers previously outside the minimum wage net.

The government has also introduced a zoning system to determine minimum pay scales, with three wage zones for municipal corporations, municipalities, and rural areas.

Under the revised structure, minimum monthly wages have been substantially increased for unskilled, semi-skilled, skilled, and highly skilled workers.

The notification also recognises specialised roles such as Drone Technology Pesticide Sprayers under the highly skilled category, ensuring higher minimum wages for such occupations.

The order mandates equal minimum wage rates for male, female, transgender, and physically challenged employees performing the same or equivalent work.

It also seeks to close subcontracting-related loopholes by making principal employers directly liable for wage payments if third-party agencies fail to pay workers.