The Union Budget 2025 has brought a significant relief for gig workers across India, particularly for cab drivers, delivery agents, and freelancers associated with online platforms. Recognizing the growing role of gig workers in India’s economy, the government has introduced a ₹5 lakh insurance cover under the PM Jan Arogya Yojana (PM-JAY) and has also announced official identity cards for these workers. The initiative aims to provide much-needed social security and financial protection to those engaged in temporary or contractual jobs.
Who Are Gig Workers?
With the rapid expansion of online services and digital platforms, the number of gig workers in India has surged. However, the lack of job security and benefits has remained a significant concern for them.
A gig worker is an individual who is employed on a contractual or temporary basis, rather than having a full-time job with a single employer. These workers typically provide services through digital platforms or third-party companies. The gig economy includes various professions such as:
- Delivery executives working with Zomato, Swiggy, Blinkit, and Dunzo
- Cab drivers associated with Ola, Uber, and Rapido
- Freelancers offering IT, design, content, and consulting services
- Handymen, beauticians, and service professionals working for platforms like Urban Company
- Warehouse workers and logistics personnel working for Amazon, Flipkart, and other e-commerce companies
Gig workers do not receive traditional employment benefits like provident funds, health insurance, or pension schemes. The Budget 2025 provisions aim to bridge this gap by extending financial and social security to these workers.
Key Benefits for Gig Workers in Budget 2025
1. ₹5 Lakh Health Insurance Under PM Jan Arogya Yojana
The biggest relief for gig workers in the Budget 2025 is their inclusion in the PM Jan Arogya Yojana (PM-JAY), which provides health insurance coverage of up to ₹5 lakh per family per year.
- The scheme allows gig workers to avail cashless treatment at empaneled hospitals across India.
- It covers expenses related to hospitalization, surgeries, medicines, and post-hospitalization care.
- Workers will receive 100% financial assistance for treatment costs within the insurance limit.
- Pre-existing diseases are also covered, ensuring that workers with chronic illnesses receive proper medical care.
This move is a major step in recognizing gig workers as a crucial part of the Indian workforce and providing them with much-needed health security.
2. Identity Cards for Gig Workers
Another key announcement in the Union Budget 2025 is the issuance of official identity cards for gig workers. These ID cards will:
- Provide formal recognition to gig workers under government records.
- Enable workers to access government schemes, social security benefits, and financial assistance.
- Allow authorities to track and regulate the gig workforce more effectively.
- Help gig workers open bank accounts, apply for loans, and avail of other financial services.
This move will streamline gig worker registrations and create a comprehensive database of all gig employees in India.
Registration of Gig Workers on e-Shram Portal
To facilitate these benefits, the government has announced the mandatory registration of gig workers on the e-Shram portal. The e-Shram portal, launched by the Ministry of Labour and Employment, is a national database for unorganized sector workers.
- Gig workers must register themselves on the portal to become eligible for insurance, pension schemes, and identity cards.
- The registration process is free and can be done online or at Common Service Centers (CSCs).
- After successful registration, workers will receive a 12-digit Universal Account Number (UAN) linked to their Aadhaar.
This initiative will increase visibility and accountability for gig workers and enable better policy planning for their welfare.
How Will Gig Workers Benefit from the New Policies?
The inclusion of gig workers in PM-JAY and the issuance of ID cards will bring multiple advantages:
1. Financial Stability & Healthcare Access
With the ₹5 lakh insurance coverage, gig workers will no longer need to worry about medical expenses. This will provide financial stability and ensure better healthcare access for them and their families.
2. Social Security & Formal Recognition
The identity cards will grant legal recognition to gig workers, making them eligible for government welfare programs and social security benefits.
3. Job Security & Better Work Conditions
With an official registration system, gig workers can demand better wages, improved working conditions, and labor rights protections.
4. Increased Creditworthiness
Formal identification will allow gig workers to open bank accounts, apply for loans, and access financial services more easily.
Why This Move is Crucial for India’s Gig Economy
India’s gig economy is one of the fastest-growing employment sectors, with an estimated 7.7 million gig workers in 2021, expected to reach 23.5 million by 2030. However, the lack of job security and financial benefits has been a major challenge.
The Budget 2025 reforms will:
- Strengthen the gig workforce by ensuring social security.
- Encourage more individuals to join the gig economy without concerns about financial risks.
- Boost economic growth by supporting workers who contribute significantly to e-commerce, ride-hailing, and service industries.
By recognizing gig workers as an essential workforce segment, the government is taking a historic step towards ensuring fair labor practices and financial security.
