Labour Laws in Telangana 2025: Minimum Wages, Working Hours, Benefits

Introduction

Overview of Telangana’s Labour Market

Telangana’s labour market is one of the most diverse in India, driven by both traditional sectors like agriculture and textiles and modern industries such as IT & ITES (Information Technology and IT-enabled Services) and pharmaceuticals. The state’s workforce is spread across:

Agriculture: Although agriculture’s share in the economy has declined, it still employs a large rural workforce, especially in the production of rice, cotton, and horticultural crops.
IT & ITES: Telangana, particularly Hyderabad’s HITEC City, is a leading IT hub, attracting professionals across software development, BPO, and fintech sectors.
Pharmaceuticals: Known as the “Pharma Capital of India”, Telangana’s pharma sector employs thousands in drug manufacturing, research, and biotechnology.
Textiles and Apparel: With apparel parks like Sircilla Textile Park, the textile industry is a key employment generator.
Manufacturing and MSMEs: Telangana’s growing industrial corridors host automotive, electronics, and food processing units, employing a mix of permanent and contractual workers.
Construction: With rapid urban expansion, particularly in Hyderabad, the construction sector employs large numbers of skilled and unskilled labourers, including migrant workers.
Logistics and Warehousing: Telangana’s strategic location supports a booming logistics and e-commerce warehousing sector, providing jobs in transportation, inventory management, and delivery services.

Importance of Labour Laws for Businesses and Workers

Labour laws in Telangana play a vital role in:

Ensuring fair wages and timely payments.
Maintaining healthy working conditions in factories, offices, and worksites.
Providing job security, especially for contractual and seasonal workers.
Extending social security benefits like healthcare, pension, and insurance coverage.
Resolving industrial disputes through legal frameworks, ensuring industrial harmony.
Supporting businesses by offering a clear regulatory framework for compliance, which in turn helps avoid penalties and legal disputes.

For workers, these laws act as a protective shield, ensuring safe working environments, fair compensation, and access to welfare benefits, particularly for those in the unorganized sector.

Key Challenges in Law Enforcement

Despite Telangana’s progressive approach to labour governance, several challenges persist:

Migrant Labour Management: The construction, logistics, and agricultural sectors rely heavily on migrant workers, mainly from Odisha, Bihar, Chhattisgarh, and Maharashtra. Ensuring their registration, fair treatment, and access to benefits is a significant challenge.
Rapid Urbanization and Contractual Employment: In sectors like IT, pharmaceuticals, and e-commerce, contract employment and third-party staffing are common, raising concerns about job security and benefits coverage.
Compliance in Rural and Semi-Urban Areas: While compliance levels in urban industrial clusters are improving, monitoring and enforcing labour laws in rural MSMEs and agricultural units remains difficult.
Worker Awareness: Many unorganized sector workers, including women artisans, construction labourers, and gig workers, remain unaware of their rights and available welfare schemes.

General Framework of Indian Labour Laws

Overview of Central Labour Laws

The labour law framework in Telangana is built on several foundational central laws, which provide the base for state-specific rules and modifications. These include:

Minimum Wages Act, 1948: Ensures that workers receive at least a minimum statutory wage based on their skill level and industry.
Industrial Disputes Act, 1947: Governs the resolution of industrial disputes, including strikes, lockouts, layoffs, retrenchments, and closures.
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: Provides for retirement savings, where employers and employees contribute monthly.
Employees’ State Insurance Act, 1948: Ensures medical and social security benefits for workers in certain categories of employment, especially low-wage earners.
Factories Act, 1948: Provides for worker safety, health, and welfare in manufacturing and industrial units.
Maternity Benefit Act, 1961: Mandates paid maternity leave and post-natal benefits for eligible women workers.
Contract Labour (Regulation and Abolition) Act, 1970: Regulates the employment of contract workers, ensuring they receive basic rights and protections.

Relationship Between Central and Telangana-Specific Laws

Differences Between Central and Telangana-Specific Laws

While the central labour laws set the foundation, Telangana has adapted and expanded these laws to suit its local economic and socio-political environment. Key areas where Telangana’s rules differ include:

Wages: Telangana has developed a detailed industry-wise minimum wage structure, factoring in its dominant sectors like IT, pharma, and construction.
Working Hours: Special exemptions for IT and ITES companies allow flexible working hours with appropriate compensation.
Compliance Simplification: Telangana has embraced online registrations, digital inspections, and single-window clearance for businesses to improve ease of compliance.
Gig Worker Regulations: Telangana is exploring new rules to extend social security benefits to app-based gig workers, particularly in food delivery and ride-hailing sectors.

Adaptation to Telangana’s Economic Landscape

Telangana’s labour laws reflect its unique economic priorities, such as:

IT and Knowledge Sector:
Special exemptions under the Shops and Establishments Act allow flexible working hours for IT companies, encouraging global competitiveness while protecting employee rights.
Pharma and Life Sciences Industry:
Specific provisions for hazardous processes, worker safety, and occupational health standards apply to pharma manufacturing units, ensuring compliance with both labour laws and environmental norms.
Construction and Real Estate:
With rapid urban growth, Telangana has adopted special welfare provisions for construction workers, including health insurance, educational scholarships for their children, and access to subsidized housing.
Agriculture and Allied Sectors:
Though agriculture employs fewer people than before, the state offers welfare and wage support schemes for agricultural labourers and seasonal workers involved in horticulture and irrigation projects.

By aligning its labour policies with its economic development agenda, Telangana seeks to attract investment, promote ease of doing business, and ensure worker welfare in both organized and unorganized sectors.

Key Telangana-Specific Labour Laws

Telangana Shops and Establishments Act

The Telangana Shops and Establishments Act, 1988 governs the working conditions, rights, and obligations of employers and employees in shops, commercial establishments, and service industries.

Applicability

Applies to shops, hotels, restaurants, theaters, private hospitals, IT/ITES firms, and commercial establishments.
Covers all employees, including full-time, part-time, contractual, and temporary workers.

Registration Process and Compliance Requirements

Businesses must register online through the Telangana Labour Department portal within 30 days of starting operations.
Required documents include:
- Business PAN and GST certificate.
- Details of employees and their working hours.
- Premises address proof.
Renewal and amendment of the registration certificate must also be done online.

Provisions on Working Hours, Rest Days, and Overtime

Daily Working Hours: Maximum 8 hours per day.
Weekly Working Hours: Maximum 48 hours per week.
Rest Day: One compulsory weekly off.
Overtime Pay: Any work beyond 8 hours/day must be compensated at twice the normal wage rate.
Special Provisions for IT/ITES Companies: These establishments can apply for relaxation of working hours with conditions to ensure employee welfare.

H3: Telangana Minimum Wages Act

The Telangana Minimum Wages Act, aligned with the Minimum Wages Act, 1948, ensures that all categories of workers receive fair compensation, preventing exploitation of low-paid employees.

Worker Categorization

Unskilled Workers: Workers performing basic tasks requiring no specialized training.
Semi-skilled Workers: Workers requiring some level of training or experience.
Skilled Workers: Workers with technical expertise, formal training, or specialized skills.

Minimum Wage Rates for 2025

Minimum wages vary by skill level, industry type, and location (urban vs rural).
Key sectors covered include:
- Agriculture and horticulture.
- Construction and infrastructure.
- Pharmaceutical manufacturing.
- IT and ITES services.
- Textile and apparel manufacturing.
- Logistics and e-commerce warehousing.

External Link:

Telangana Labour Department – Minimum Wages

Factories Act (Telangana Provisions)

The Factories Act, 1948, as implemented in Telangana, regulates working conditions, safety standards, and welfare provisions in manufacturing and industrial units.

Worker Safety and Health Provisions

Mandatory health and safety training for workers.
Regular medical check-ups for employees working in hazardous processes (common in pharmaceuticals and chemical industries).
Compulsory provision of protective equipment (gloves, helmets, masks, safety shoes) in high-risk units.

Welfare Facilities

Factories must provide:
- Canteens (for units with 250+ workers).
- Restrooms and clean drinking water.
- First aid and medical care facilities.
- Crèche facilities for units with a specified number of female employees.

Compliance and Inspections

Telangana has introduced self-certification schemes and randomized e-inspections to balance compliance with ease of doing business.
Employers must maintain updated records on working hours, wages, safety audits, and accident reports.

External Link:

Telangana Labour Department – Factories Section

Minimum Wages in Telangana

Breakdown of Minimum Wages

Wage Rates for 2025 Categorized by Worker Type and Industry

Minimum wages in Telangana for 2025 are structured to reflect:

Skill level (Unskilled, Semi-skilled, Skilled).
Industry type (agriculture, manufacturing, IT, etc.).
Location (urban hubs like Hyderabad vs rural districts).

Indicative Minimum Wages for 2025 (Sample)

Worker Category	Agriculture (₹/day)	Construction (₹/day)	Pharma (₹/day)	IT & ITES (₹/day)	Logistics (₹/day)	Textiles (₹/day)
Unskilled	₹420	₹500	₹520	₹550	₹500	₹470
Semi-skilled	₹500	₹580	₹600	₹650	₹570	₹540
Skilled	₹600	₹680	₹750	₹800	₹650	₹620

(These are sample rates based on past trends — final 2025 rates will be notified by the Telangana Labour Department.)

Sector-Specific Variations

Agriculture Workers: Seasonal agricultural labour wages differ from permanent farm labourers.
Construction Workers: Wages vary for roles like masonry, electrical work, plumbing, etc..
Pharma Workers: Manufacturing and R&D staff in pharmaceutical units have higher minimum wages due to higher skill demands.
IT/ITES Workers: Wages are governed by a separate skill matrix for IT professionals and back-office staff.
Logistics Workers: Drivers, warehouse staff, and delivery personnel have distinct wage structures.
Textile Workers: Wages vary based on whether they work in spinning mills, garment factories, or handloom units.

Revisions and Compliance

Frequency of Wage Revisions

Minimum wages in Telangana are revised periodically, typically:
- Annual revisions for inflation adjustments.
- Industry-specific revisions based on economic changes, demand, and worker representation.

Compliance Requirements

All employers must:
- Display the official minimum wage notification prominently at the workplace.
- Pay wages electronically where feasible.
- Maintain wage registers and pay slips.
- Ensure contract workers receive no less than the minimum wages applicable to regular workers.

Penalties for Non-Compliance

Non-payment of minimum wages attracts:
- Fines up to ₹10,000 per worker.
- Prosecution and imprisonment for repeated violations.
- Disqualification from government tenders for habitual offenders.

Working Hours, Leaves, and Holidays

Working Hours

Standard Daily and Weekly Working Hours

Under the Telangana Shops and Establishments Act and the Factories Act, the standard working hours are:
- Maximum 8 hours per day.
- Maximum 48 hours per week.
For seasonal sectors, such as agriculture and tourism, working hours can be adjusted during peak seasons, but must remain within legal weekly limits.

Overtime and Compensatory Off Policies

Overtime Pay: Any work beyond 8 hours per day or 48 hours per week must be compensated at double the regular wage rate.
Compensatory Off: Employees required to work on a weekly off day or public holiday must either:
- Receive double wages, OR
- Be granted a compensatory off day within 3 months.
IT/ITES Sector Flexibility: IT and BPO companies can apply for relaxed working hour rules, subject to ensuring proper employee welfare policies are in place.

Leave Entitlements

Annual Leave (Earned Leave)

Employees earn 1 day of paid leave for every 20 days worked.
Leave can be carried forward, typically up to 30 days.
Some sectors, like pharma and textiles, may have slightly different rules under standing orders or sectoral agreements.

Casual Leave

Generally, employees are entitled to 7 to 12 days of casual leave per year, depending on the establishment size and nature.
Unused casual leave cannot be carried forward.

Sick Leave

7 days of sick leave per year, fully paid.
For longer illnesses, employees may apply for unpaid medical leave, supported by a medical certificate.

Maternity Leave

Under the Maternity Benefit Act, eligible women employees are entitled to:
- 26 weeks of paid maternity leave for the first two children.
- 12 weeks for the third child and onwards.
- 6 weeks leave for miscarriage or medical termination of pregnancy.
- Crèche facilities are mandatory for workplaces with 50 or more employees.

Public Holidays in Telangana

List of Public Holidays

The Government of Telangana issues an annual list of public holidays, covering national holidays, state-specific festivals, and local observances. Some important holidays in 2025 will include:

Holiday	Date (Tentative 2025)
Republic Day	January 26
Ugadi	March 30
Ramzan	March 29
Independence Day	August 15
Bathukamma Festival	October 1
Diwali	October 21
Christmas Day	December 25

(Dates may vary based on the official government notification.)

Wage Implications for Working on Public Holidays

Employees working on a public holiday are entitled to:
- Double pay for the day, OR
- A compensatory off day within 90 days.
In continuous process industries (like pharma manufacturing), shift work on holidays may be pre-scheduled, but still requires extra pay or compensatory leave.

Employee Benefits and Welfare Schemes

Social Security Programs

Implementation of EPF and ESI in Telangana

Employees’ Provident Fund (EPF):
- Mandatory for all establishments with 20 or more employees.
- Contributions:
  - Employer: 12% of basic wages.
  - Employee: 12% of basic wages.
- Ensures retirement savings, pensions, and insurance benefits.
Employees’ State Insurance (ESI):
- Mandatory for establishments with 10 or more employees.
- Applicable to employees earning ₹21,000 per month or less.
- Contributions:
  - Employer: 3.25% of wages.
  - Employee: 0.75% of wages.
- Provides medical care, maternity benefits, disability cover, and dependents’ benefits in case of work-related injury or death.

Telangana-Specific Welfare Schemes

Construction Workers Welfare

Administered by the Telangana Building and Other Construction Workers Welfare Board.
Benefits include:
- Health insurance coverage.
- Educational scholarships for workers’ children.
- Financial aid for marriage, maternity, and funeral expenses.
- Pension schemes for eligible retired workers.

Welfare Schemes for Gig and Platform Workers

Telangana is actively exploring social security measures for gig workers in sectors like:
- Food delivery, ride-hailing, and e-commerce logistics.
Proposed benefits (under discussion) include:
- Accident insurance coverage.
- Access to health insurance schemes.
- Skill enhancement programs for career growth.

Migrant Worker Support Programs

With a significant influx of migrant labour, Telangana offers:
- Registration portals to track and support migrant workers.
- Access to ration cards and health benefits irrespective of home state.
- Mobile health units at construction sites and industrial clusters.

MSME Worker Welfare

Special schemes for workers employed in micro, small, and medium enterprises, including:
- Skill development programs in sectors like textiles, food processing, and electronics.
- Credit-linked housing programs for factory workers.
- Group insurance schemes for small business employees.

Skill Development and Employment Generation

Through the Telangana Academy for Skill and Knowledge (TASK), the government offers:
- Free skill training for youth in IT, electronics, pharma, and hospitality.
- Placement support in domestic and international job markets.
Rural Employment Schemes: Focused on upskilling rural youth and connecting them with urban job opportunities.

Industrial Relations and Dispute Resolution

Mechanisms for Dispute Resolution

Role of Labour Courts and Industrial Tribunals in Telangana

Telangana has a structured dispute resolution framework, governed by the Industrial Disputes Act, 1947, and state-specific amendments where necessary. The system addresses:

Individual disputes (wrongful termination, wage issues, denial of benefits).
Collective disputes (strikes, lockouts, changes in service conditions).

Key Institutions

Labour Courts: Handle individual disputes related to:
- Dismissal, retrenchment, or denial of statutory benefits.
- Non-payment of wages or unlawful deductions.
- Violation of safety or welfare provisions under labour laws.
Industrial Tribunals: Handle larger disputes such as:
- Collective bargaining disagreements between unions and employers.
- Strikes and lockouts.
- Disputes involving large-scale layoffs or factory closures.
Conciliation Officers (Labour Department):
Before disputes reach the court, the Labour Department’s conciliation officers work to resolve issues through negotiation.

Digital Dispute Filing

Telangana encourages online grievance filing through the Labour Department portal, ensuring faster case registration and tracking of dispute resolution status.

Worker Grievance Redressal Mechanisms

All medium and large establishments are required to:
- Set up Internal Grievance Committees.
- Display grievance redressal contact points within the premises.
- Facilitate worker access to conciliation officers in case of unresolved issues.
Workers can also directly approach:
- District Labour Officers.
- Online Grievance Portal on the Telangana Labour Department website.
- Workers’ unions for legal support during industrial disputes.
For complaints related to sexual harassment, employers must establish Internal Complaints Committees (ICCs) as mandated by the POSH Act, 2013.

Strikes, Lockouts, and Layoffs

Legal Provisions

Strikes:
- Workers must provide at least 14 days’ notice before initiating a strike.
- Strikes in public utility services (healthcare, electricity, water supply) require prior government approval.
- Unlawful strikes attract disciplinary action and penalties for participating workers.
Lockouts:
- Employers must provide advance notice to workers and the Labour Department before imposing a lockout.
- Unlawful lockouts can lead to fines and legal action against management.
Layoffs and Retrenchments:
- Industrial establishments with 100 or more workers must obtain prior permission from the Telangana Labour Department for:
  - Layoffs.
  - Retrenchments.
  - Closures.

Employer Responsibilities During Layoffs

Advance Notice: Employers must provide clear and written notice with reasons for layoffs to both workers and the Labour Department.
Compensation: Workers affected by layoffs are entitled to 50% of their average wages during the layoff period (up to 45 days in a year).
Rehiring Priority: If work resumes within one year, laid-off workers must be given first preference for re-employment.

Recent Amendments or Updates

Key 2025 Updates in Telangana’s Labour Laws

Minimum Wages Revision for 2025

Telangana has notified revised minimum wages for 2025, adjusting for:
- Inflation rates.
- Industry growth patterns.
- Urban vs rural cost of living differences.
Special emphasis has been placed on:
- Pharmaceutical sector wages.
- IT/ITES back-office support staff wages.
- Logistics and e-commerce warehousing worker wages.

Simplified Compliance for MSMEs

The Labour Department launched a self-certification scheme for MSMEs, allowing simplified filing of labour compliance returns.
E-Inspections (randomized digital selection for inspections) are being expanded to cover:
- Pharma units.
- Construction projects.
- Food processing units.

Welfare Scheme Enhancements

Construction Workers: Enhanced health benefits and increased educational scholarships for children of registered workers.
Gig and Platform Workers: Telangana is developing a Welfare Board for Gig Workers, with:
- Accident insurance.
- Access to government health schemes.
- Digital skills training for career diversification.
Migrant Labour Support: Telangana is improving migrant labour databases, ensuring better access to:
- Ration cards.
- Health insurance.
- Temporary housing near worksites.

Digital Labour Law Updates

Employers can now:
- Download compliance certificates.
- File annual returns.
- Track ongoing inspections.
- Receive automated alerts on compliance deadlines via the Telangana Labour Department portal.

Sector-Specific Policy Changes

Pharma Industry: New rules on occupational health safety audits for pharma and chemical manufacturing plants.
IT/ITES Sector: Guidelines updated for work-from-home compliance, ensuring that employees working remotely are still covered under wage and overtime laws.

Government Notifications

Official government notifications on:
- Minimum wages for 2025.
- New welfare schemes.
- Compliance deadlines and formats.
- Revised rules for employment of women in night shifts.

Conclusion

Telangana’s labour laws for 2025 reflect the state’s unique economic landscape, balancing the needs of traditional sectors like agriculture and textiles with the requirements of modern industries such as IT, pharmaceuticals, and logistics.

The state’s legal framework focuses on:

Ensuring fair wages across all skill levels and industries.
Establishing safe and healthy working conditions for employees, especially in construction, manufacturing, and hazardous industries.
Protecting social security rights through mandatory EPF and ESI contributions.
Enhancing welfare schemes for migrant workers, gig workers, and construction workers, recognizing the evolving nature of Telangana’s workforce.
Promoting digital compliance, self-certification for MSMEs, and transparent inspections, making it easier for businesses to comply with labour laws while ensuring worker rights are safeguarded.

Through regular minimum wage revisions, worker welfare programs, and labour dispute resolution mechanisms, Telangana aims to foster a business-friendly environment that also prioritizes worker dignity and social security.

Frequently Asked Questions (FAQs)

1. What are the latest minimum wages in Telangana for 2025?

The minimum wages for 2025 vary by industry, skill level, and location (urban vs rural). Rates apply across key sectors including agriculture, construction, pharmaceuticals, textiles, IT, and logistics. The full official notification can be accessed on the Telangana Labour Department website.

2. How can businesses register under the Telangana Shops and Establishments Act?

Businesses must register within 30 days of opening.
Registration is done online through the Telangana Labour Department portal.
Required documents include:
- PAN card, GST registration, address proof, and employee details.
After verification, a digital registration certificate is issued, which must be displayed at the workplace.

3. What are the leave entitlements for employees in Telangana?

Annual Leave (Earned Leave): 1 day for every 20 days worked, with carry forward options (up to 30 days).
Casual Leave: 7 to 12 days per year, depending on the nature of the establishment.
Sick Leave: Typically 7 days per year, fully paid.
Maternity Leave: 26 weeks for the first two children, with reduced leave for subsequent children. Additional leave for miscarriage or medical termination is also provided.

4. How does overtime payment work in Telangana?

Employees working beyond 8 hours per day or 48 hours per week must receive overtime pay at twice the normal wage rate.
Overtime provisions apply across shops, establishments, factories, and construction projects.
IT/ITES firms may apply for flexible working hour exemptions, subject to compliance with employee welfare norms.

5. Are EPF and ESI mandatory for all employees?

EPF (Employees’ Provident Fund): Mandatory for establishments with 20 or more employees.
ESI (Employees’ State Insurance): Applicable to establishments with 10 or more employees and covers workers earning up to ₹21,000 per month.
Both schemes provide essential retirement savings, healthcare, disability, and maternity benefits.

6. What welfare schemes are available for construction and gig workers in Telangana?

Telangana offers several welfare schemes:

Construction Workers:
- Health insurance.
- Education scholarships for children.
- Maternity and marriage benefits.
- Pension scheme for retired workers.
Gig and Platform Workers:
- Accident insurance.
- Access to government healthcare schemes.
- Proposed: Skills training and financial aid for upskilling gig workers.
Full details are available through the Telangana Labour Welfare Board.

7. How can workers file disputes in Telangana?

Workers can file grievances:

Directly with their employer’s internal grievance committee.
Through the District Labour Office.
Via the online grievance portal of the Telangana Labour Department.
Through trade unions or worker associations, especially in manufacturing or construction sectors.

8. What is the role of labour courts in Telangana?

Labour courts handle:

Wrongful termination and wage disputes.
Non-payment of statutory benefits (leave, gratuity, PF).
Unlawful strikes, lockouts, or retrenchments.
Labour courts work in conjunction with conciliation officers and industrial tribunals to resolve both individual and collective disputes.

9. What are the differences between Telangana and Andhra Pradesh labour laws?

Aspect	Telangana	Andhra Pradesh
Minimum Wages	Regularly updated with focus on IT, pharma, construction sectors	Focus on agriculture, textiles, and manufacturing
Shops Act	Online registration & self-certification for MSMEs	Similar but less streamlined in some rural areas
IT/ITES Regulations	Flexible working hours permitted with conditions	Standard working hours apply, fewer exemptions
Migrant Worker Welfare	State-wide migrant labour portal & welfare programs	Some migrant worker programs, but limited digital support
Welfare for Gig Workers	Actively developing a Gig Workers Welfare Board	No dedicated welfare board for gig workers yet

10. How are public holidays handled in Telangana?

Telangana declares an annual list of public holidays, covering national events, state festivals, and religious observances.
Workers are entitled to paid leave on official holidays.
Employees working on public holidays must receive:
- Double pay, or
- A compensatory off day within 3 months.
Certain continuous process industries may pre-schedule holiday work with proper compensation mechanisms.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.