Telangana to levy 1–2 per cent cess on gig services to fund workers’ welfare board

The Telangana government is proposing a 1–2% cess on gig platform bills, to be paid by consumers, for funding a Gig Workers Welfare Board. A draft bill is under discussion, with feedback from stakeholders and Cabinet approval expected soon.

Hyderabad:  The State government is proposing a cess of one to two per cent on bills generated by gig platforms to mobilise revenue for the Gig Workers Welfare Board.

This additional charge, to be borne by consumers, is part of the proposed Gig Workers Act, which is expected to be introduced shortly. A draft of the Act has already been prepared, and the Labour Department held discussions with aggregators and workers in Hyderabad on Friday.

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Briefing mediapersons, Labour Minister Vivek Venkat Swamy said the nominal cess was intended to generate funds for the board. “One to two per cent cess is nominal. It should not be a big burden on the consumers,” he said.

There are nearly 4.5 lakh gig workers in the State. The draft Bill has been placed in the public domain for feedback. So far, 66 suggestions have been received from aggregators and workers’ unions. This marks the first step towards introducing the Gig Workers Act. The initial phase would involve registration of workers, constitution of the board, and related measures, the Minister added.

Workers have also demanded insurance coverage. On the issue of social security, the Minister said the board would take a call.

“All these aspects will be incorporated in the final Bill, which will be sent to the Cabinet for approval. Hopefully, the Bill will be passed in the next Assembly session,” he said.