As India continues to reshape its labour landscape, Telangana has emerged as a frontrunner in progressive reform. The state has set a new standard in balancing economic flexibility with essential worker protection, from formalizing gig work to legalizing bike taxis under national guidelines.
For businesses, these changes go beyond mere compliance; they represent a clear call to realign operations, platforms, and policies. This is precisely where Team Kapgrow offers its expertise.
Key Changes in Telangana's Labour Ecosystem
- Extended Working Hours for Commercial Establishments
Commercial establishments in Telangana now have the flexibility to operate for up to 10 hours per day, six days a week. The total weekly cap remains at 48 hours, with a daily upper limit of 12 hours, inclusive of breaks. Any overtime beyond these limits will incur standard compensation. This change offers enhanced scheduling flexibility for employers but also increases the complexity of monitoring and workforce planning.
- Telangana Gig and Platform Workers Act, 2025
This landmark act mandates the registration of gig workers and facilitates the creation of a Welfare Board. Frameworks for insurance, skill development, and pensions are also underway. As the first of its kind in India, this act introduces new regulatory responsibilities for aggregators and platforms, significantly impacting the rapidly growing gig economy.
- Minimum Wages and MSME Digitization
Telangana has implemented inflation adjusted minimum wage rates and launched an online portal for micro, small, and medium enterprises (MSMEs). This portal simplifies self-certification, inspections, and provides instant compliance status, making it easier for MSMEs to remain compliant, especially if they adopt appropriate digital tools.
- IT/ITeS Exemptions Extended to 2028
Exemptions for the IT and ITeS sectors have been extended until 2028, allowing for hybrid and night shift operations. Crucially, mandatory safety protocols for women, weekly offs, and overtime compensation are now non-negotiable. While encouraging flexible and inclusive work models, these extensions necessitate updated company policies and meticulous documentation for compliance.
- Construction and Migrant Worker Inclusion
The state is prioritizing the welfare of construction and migrant workers through scholarships for their children, new housing initiatives, and enhanced health and welfare benefits. A real time worker registry is also in progress. These measures elevate welfare standards and increase employer accountability within the construction sector.
- Motor Vehicle Aggregator Guidelines (MVAG) 2025
These guidelines legalize bike taxis at the discretion of the state and cap surge pricing at twice the base fare. Aggregators are now required to ensure drivers operating their own vehicles receive at least 80% of earnings, provide insurance coverage of ₹5 to ₹10 lakh for both passengers and drivers, and maintain a 24/7 control room with panic buttons and route alerts. Requirements also include language localization and cybersecurity compliance. This national framework offers legal clarity for platforms like Uber, Rapido, and Ola but establishes high entry and operational thresholds.
How Kapgrow Makes the Difference?
Kapgrow Corporate Advisory Services Private Limited is uniquely positioned to help organizations not just comply with these new regulations but also stay ahead of the curve.
- Regulatory Intelligence: Kapgrow translates complex state level amendments into clear, actionable guidance.
- Digital Labour Compliance: They align HRIS and legal functions with regulations ranging from the Shops and Establishments Act to the new Aggregator Guidelines.
- Workforce Training: Kapgrow conducts customized workshops on various labour laws, including those pertaining to overtime, gig worker engagement, POSH (Prevention of Sexual Harassment), and platform ethics.
- Audit Readiness: With comprehensive checklists, gap assessments, and mock inspections, Kapgrow ensures businesses are ready for MVAG and other labour code audits.
- Policy Rewriting and Contracts: Kapgrow proactively revises documentation to reflect new wage floors and gig worker protections, ensuring all policies and contracts are up to date.
Whether you are a startup, aggregator, construction firm, or MSME, Kapgrow helps facilitate a smooth transition from compliance related stress to policy confidence.
Telangana’s latest reforms are more than just a regulatory checklist; they are a clear signpost to the future of work in India. The organizations that will thrive are those that adapt early, proactively train their workforce, and partner smartly.
With Team Kapgrow, businesses can do more than just comply; they can lead the way.
For a personalized compliance blueprint for your business, connect with Kapgrow Corporate Advisory Services Private Limited.
Phone: 7503110330 / 9310270884
Email: info@kapgrow.com
Website: www.kapgrow.com
