Union Budget 2025: What's In It For Gig Workers?

The Union Finance Minister Nirmala Sitharaman on Saturday presented her eighth consecutive Budget in the Parliament and made an announcement saying 1 crore gig workers will receive official identity cards and healthcare benefits.

According to the Union Minister's announcement 1 crore gig workers will receive official identity cards as well as healthcare benefits under the PM Jan Arogya Yojana, as part of the Social Security Scheme for Welfare of Online Platform Workers.

But Who Are Gig Workers?

The NITI Aayog defines gig workers as professionals employed "outside the traditional employer-employee arrangement" and they can be categorized into platform and non-platform-based workers.

What Do Gig Workers Get Out Of This Budget?

This social security initiative targets gig workers from platforms like Zomato , Swiggy , Zepto , and BigBasket like delivery partners, and warehouse workers among others. The initiative is also aimed at formalizing the growing gig economy sector through mandatory registration on the e-Shram portal. This program will be implemented under the Ministry of Labour and Employment.

"Gig workers of online platforms provide great dynamism to the 'New Age' services economy. Recognising their contribution, our government will arrange for their identity cards and registration  on the e-Shram portal," the minister said in her Budget speech.

The Social Security Scheme for Welfare of Online Platform Workers will also include several essential benefits for gig workers such as health insurance, along with death and disability coverage. The scheme is expected to roll out in the next financial year.

This is a significant step in the direction of providing social security benefits to the Indian gig economy workforce by formalizing its access to the government's welfare schemes.

Commenting on how this is an inclusionary measure, Arnab Basu, Partner & Leader – Advisory, PwC India, said, “The Union Budget 2025 has a sharp focus on inclusion-focused measures, like healthcare for one crore gig workers and Rs 2 crore term loans for first-time entrepreneurs from the marginalised communities.”

He added that this will help the economy broaden economic participation at a time when the economy requires social mobility for long term growth that is also sustainable. 

“The Budget also addresses both urban and rural livelihoods through targeted investments and skilling, making sure that more opportunities increasing income are generated over a long period of time. Given the slowdown in consumption, in last one year or so in the Indian economy, these announcements are all set to improve demand over the next two years. By strengthening employment, providing entrepreneurship opportunities, and improving on the social security, the budget would definitely strengthen the foundation for a more resilient and inclusive economic recovery,” Basu added.