Union Budget 2025: Gig workers to get health insurance, but stakeholders demand stronger protections
During the Union Budget 2025, Finance Minister Nirmala Sitharaman announced significant measures for the gig and platform workers saying that gig workers would be provided health insurance under the government’s flagship Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
Stakeholders have welcomed the move but have also raised concerns that gig workers are still awaiting a comprehensive national law, a dedicated welfare board, and the full implementation of these measures.
Currently, the National Health Authority (NHA) implements the world’s largest health insurance scheme, which provides health cover of ₹5 lakh per family per year. Under the terms of AB-PMJAY, there is no waiting period and no restrictions on pre-existing health conditions.
Gig workers will also be issued identity cards and be eligible to register on the e-Shram portal, the national database of unorganised workers under the labour ministry.
Gig workforce
According to NITI Aayog estimates, India’s gig workforce is projected to grow from 7.7 million in 2024 to 23.5 million by 2029-30.
With the expansion of the digital economy, freelancing opportunities have surged, driving the rapid growth of the gig sector. By FY30, the gig economy is expected to reach 235 million workers, making up 4.1 per cent of the total workforce.
“Government taking some responsibility for gig workers is a welcome move but the plight of gig workers is beyond this. There should be all-encompassing legislation to govern the operation of app-based platform companies to safeguard the interest of the gig workers,” said Vinay Sarathy V, President, United Food Delivery Partners’ Union (UFDPU).
However, Vinay noted that the modalities to access the new health insurance scheme are not yet released. As there is no transparency in hiring, no regulations for payment, grievance redressal, working hours, workplace safety and others it may just remain a pious declaration and would not serve the intended purpose of health coverage in reality.
“Five years down the line most of the informal workers will be in the platform sector. It is time that the government to bring in a proper policy, ensure the security, safety and the rights of the gig workers,” he added.
Shaik Salauddin, national general secretary of the Indian Federation of App-Based Transport Workers (IFAT), says for these schemes to be fully effective, aggregator companies must share data on gig and platform workers with the government. “The Government of India must ensure strict implementation and accountability, making it compulsory for all platform companies to register workers and contribute towards social security schemes. There is a need to ensure contributions by aggregator companies towards social security schemes for gig and platform workers”, he said.
He said it is further important to strengthen the integration of e-Shram registration for gig and platform workers with existing welfare schemes. Registration alone will not suffice to ensure that gig workers can access the full benefits of these initiatives.
