Top News

No more cash wages to workers in Telangana
01 Jun 2026

In a landmark decision, the Telangana government has banned cash wage payments to workers and mandated electronic transfers.

The new policy also brings gig workers under the minimum wage safety net.

The order is being hailed as a "gold standard for progressive labor governance."

It implements the provisions of the Centre's Code on Wages, 2019, and supersedes the Minimum Wages Act of 1948 in Telangana.

Elegant legal balance
Policy details

The new government order (GO) explicitly bans cash payouts. Employers are now required to pay wages through direct electronic transfer (NEFT/RTGS/IMPS) or bank check.

This is aimed at creating an unalterable trail for labor inspectors and protecting vulnerable workgroups.

The GO strikes an "elegant legal balance" by bridging structural business requirements with social protections, a government statement said today.

Unified grid replaces fragmented frameworks
Strategy shift

The new order replaces the "fragmented, friction-heavy industries-wise frameworks seen in other states" with a unified, transparent grid.

This is aimed at maximizing worker security and making Telangana an attractive destination for domestic and international capital.

To ensure direct compliance clarity and cut corporate red tape, the notification eliminates hundreds of industry-specific schedules.

Instead, it categorizes all non-agricultural commercial/industrial setups into four skill categories: unskilled, semi-skilled, skilled and highly skilled.

Minimum wages revised upward in all zones
Wage categories

The new order has also divided the state into three zones: Zone 1 (Municipal Corporations), Zone 2 (Municipalities) and Zone 3 (Rural Areas).

In each zone, the minimum wage for different skill categories has been revised upward. For instance, in Zone 1, unskilled workers' minimum wage has been increased from ₹12,750 to ₹16,000.

Overtime rules
Worker rights

The new order mandates that any work done beyond the standard eight-hour shift, or on public holidays and weekly rest days, must be paid as overtime at double the standard rate of wages.

If an industrial cluster already pays more than this order's baseline, the old wages are exempted from the new rules.

These workers also get an additional mandatory 10% enhancement over their old wages.