Telangana Gig Workers Union Seeks Commission Cap, Social Security in Draft Aggregator Rules

The Telangana Gig and Platform Workers Union submitted recommendations to the state Transport Department on July 28 calling for a 60% minimum fare share for drivers, mandatory health insurance of ₹5 lakh per worker, and protection from account deactivations in the proposed Motor Vehicles Aggregator Rules, 2026, according to The Hindu.

The union's proposal targets app-based ride platforms operating in the southern state, where thousands of drivers face sudden income loss through what organizers describe as arbitrary profile deactivations. The recommendations form part of the state's consultation process for finalizing aggregator regulations.

Proposed Commission Limits and Fare Transparency

The union's draft rules call for aggregators to pay drivers at least 60% of each fare after accounting for applicable costs, with a transparent ceiling on platform commissions. Union office bearer Shaik Salauddin told The Hindu that platform deductions significantly reduce driver earnings, leaving many workers struggling despite long hours.

The recommendations require aggregators to disclose the basis of fare calculation and incentive structures. The union also seeks notification of a fair minimum base fare, with periodic revision of per-kilometer and per-minute charges conducted in consultation with registered driver unions. Surge pricing would face regulatory limits under the proposed framework.

Social Security and Insurance Requirements

The draft proposes mandatory health insurance coverage of ₹5 lakh and term insurance of ₹10 lakh for every onboarded driver. Additional social security measures include pension benefits, maternity coverage, and access to welfare board schemes. The union argues these protections are essential for workers who currently operate without employer-provided safety nets.

Refresher training programs and other welfare provisions would be required under the recommended rules. The proposals mirror broader workplace safety advocacy emerging across India's informal workforce sectors.

Deactivation Protections and Grievance Mechanisms

Salauddin said scores of workers have experienced sudden profile deactivations that eliminate their income source without warning or explanation. The union's recommendations prohibit ID blocking or suspension without prior notice, written reasons, and access to an independent appellate mechanism.

The draft calls for time-bound grievance redressal through an independent authority, with mandatory consultation with registered driver unions before any rule amendments. Written contracts would be required in Telugu and Urdu, the primary languages spoken by drivers in the region.

The union also demands clarity on penalty policies governing account suspension and deactivation. Current practices leave drivers with no recourse when platforms remove their access to the app.

Occupational Welfare Provisions

Other recommendations address daily working conditions through rest areas, sanitation facilities, medical support, and emergency assistance for drivers. The proposals recognize that gig workers spend extended periods on the road without access to basic workplace amenities.

The union submitted its recommendations as the Transport Department drafts regulations for the state's growing app-based transportation sector. The consultation period allows worker organizations, platforms, and other stakeholders to shape the final rules before implementation.

Context and Outlook

The Telangana union's advocacy reflects a broader pattern of gig worker organizing across India as platform-based work expands without corresponding labor protections. Similar campaigns have emerged in Karnataka, Maharashtra, and Delhi, where delivery and ride-hailing workers face comparable challenges around earnings transparency, social security, and arbitrary deactivation.

The proposed rules would establish India's most comprehensive regulatory framework for gig workers if adopted, potentially setting a precedent for other states wrestling with how to balance platform innovation with worker protections. The Transport Department has not announced a timeline for finalizing the aggregator rules or indicated whether it will incorporate the union's recommendations.

State-level regulation remains the primary mechanism for addressing gig worker rights in India, where national labor law reforms have yet to fully encompass platform-based employment relationships. The outcome of Telangana's rulemaking process may influence how other jurisdictions approach similar policy questions.