Telangana bans cash wages, expands minimum wage

The India — Telangana>>> government has implemented a new labor governance framework, effective June 1, banning cash wage payments and mandating electronic transfers. This policy also extends minimum wage protections to gig and platform workers, including those in e-commerce, courier services, and LPG distribution. The new Government Order (GO) No. 6 activates provisions of the Centre's Code on Wages, 2019>>>, superseding the Minimum Wages Act, 1948>>>. It introduces a unified wage structure, categorizing workers into four skill levels and dividing the state into three zones for minimum wage determination. Minimum wages have been substantially increased across all categories and zones. The order also mandates double pay for overtime and makes principal employers directly liable for wage payments if third-party agencies fail to pay workers. This move aims to enhance worker security, eliminate exploitation, and attract domestic and international capital by streamlining compliance and offering strategic advantages for industrial development.