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Sri-Bhagavan uvaca
sannyasah karma-yogas ca nihsreyasa-karav ubhau
tayos tu karma-sannyasat karma-yogo visisyate

Meaning of words

•    sri-bhagavan uvaca—Sri Krishna said
•    sannyasah--renunciation of work
•    karma-yogah--work in devotion
•    ca--also
•    nihsreyasa-karau--all leading to the path of liberation
•    ubhau--both; tayoh--of the two
•    tu--but; karma-sannyasat--in comparison to the renunciation of fruitive work
•    karma-yogah--work in devotion
•    visisyate--is better

Meaning of sloka
Sri Krishna said: The renunciation of work and work in devotion are both good for liberation. But, of the two, work in devotional service is better than renunciation of works.

Explanation
Fruititive activities are cause for material bondage. As long as one is engaged in activities aimed at improving the standard of bodily comfort, one is sure to transmigrate to different types of bodies, thereby continuing material bondage perpetually.

Karma yoga is better. Even for the jnani, performing action is not at all a fault. Rather, by performance of niskama karma, the heart becomes fixed in purity. From that, jnana becomes fixed. Sometimes there may arise the disturbances in the heart of the sannyasi. Impurity in the heart obstructs the practice of jnana, but taking up enjoyment of sense objects is a real degradation.

A person can beneficially perform karma yoga or prescribed Vedic activities as well as renunciation of the rewards of actions; but between the two, karma yoga is preferable. Both are equally authorised and when karma yoga includes the renunciation of the rewards, it becomes superior for without a sense of detachment and renunciation activities are influenced by the dualities of life such as success and failure and become a source of misery.

By Premji