Telangana Announces New Pension Scheme for Government Employees and Law for Gig Workers (Zomato, Uber drivers)
Big news for Telangana's workforce! The state announces a new comprehensive pension scheme for 15 lakh government employees and a groundbreaking protection law for gig workers. Get all the details here.
In a landmark double announcement, the Telangana government has launched a major reform to secure the future of its workforce. The state will introduce a new pension scheme for lakhs of government employees and, in a first for India, a protective law for gig workers, including delivery personnel for Zomato and Swiggy and drivers for Uber and Ola.
HYDERABAD – The Telangana government has unveiled a revolutionary dual strategy to provide financial security to its organized and unorganized workforce. The centerpiece of this reform is a new comprehensive pension scheme for government employees and the nation’s first-ever dedicated welfare act for gig and platform workers, such as those driving for Uber or delivering for Zomato.
Announced on November 13-14, 2025, this initiative aims to bridge the pension gap for the state’s massive government workforce while finally extending social security benefits to the fast-growing gig economy.
Table of Contents
Part 1: New Pension Security for Government Employees
Facing significant financial pressure, the state is partnering with the Pension Fund Regulatory and Development Authority (PFRDA) to standardize retirement benefits.
Key Facts of the New Pension Plan:
- Who is covered? The scheme is designed for 15 lakh government employees, teachers, and pensioners in Telangana.
- Why the change? The state is dealing with a huge backlog of ₹8,200 crore in unpaid retirement benefits, with thousands more employees retiring each year.
- The Goal: To create a sustainable and reliable pension scheme for government employees that ensures their retirement security without crippling state finances.
Part 2: Historic Protection for Gig Workers (Zomato, Uber Drivers)
This is the most groundbreaking part of the announcement, making Telangana the first state to comprehensively protect gig workers.
What Does the New Gig Worker Law Offer?
The Telangana Gig and Platform Workers Act, 2025, promises unprecedented rights and security for delivery partners and drivers.
Dispute Resolution: Mandatory committees will be set up to resolve conflicts between workers and platforms.
Welfare Fund: A dedicated fund, financed by a 1-2% fee on every transaction from platforms like Zomato, Swiggy, Uber, and Ola, will pay for social security schemes.
Protection from Sudden Job Loss: Platforms cannot deactivate a worker’s account without a 7-day notice, preventing arbitrary termination.
Algorithm Transparency: For the first time, companies must clearly explain how their apps assign work, calculate pay, and rate performance—addressing a major grievance of Uber and Ola drivers.
