Union Budget 2025: Gig workers to get healthcare benefits and ID cards

Finance Minister Nirmala Sitharaman said in her budget speech that the gig workers of online platforms provide great dynamism to the new-age services economy.
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BENGALURU: The rapid growth of e-commerce companies, especially quick commerce, has increased the overall gig worker demand. In a significant step, the budget has extended healthcare benefits for gig workers.

Finance Minister Nirmala Sitharaman said in her budget speech, "Gig workers of online platforms provide great dynamism to the new-age services economy."

The Centre will provide identity cards and registration on the e-Shram portal. Gig workers will also be provided healthcare under PM Jan Arogya Yojana. "This measure is likely to assist nearly 1 crore gig-workers," she added.

Earlier, it was expected that the Budget would provide clarity on the treatment of these workers under labour laws.

"While the budget extends healthcare benefits for gig workers, a detailed social security framework and streamlined access to income stability would have also helped boost the ecosystem," said Sachin Alug, CEO of NLB Services.

Gig worker recognition, with e-Shram ID cards and health cover, will support the growing omnichannel retail ecosystem by strengthening last-mile delivery and digital commerce, said Kumar Rajagopalan, CEO Retailers Association of India.

Recently, the Forum for Progressive Gig Workers released a whitepaper that stated that the gig economy market will grow at a CAGR of 17% to reach a volume of $455 billion by 2024. It will also create 90 million jobs.

Madhav Krishna, CEO and Founder of Vahan.ai, an AI led recruitment platform for gig workers, said the government earmarking funds for healthcare benefits under the PM Jan Arogya Yojana to about 1 crore gig workers is commendable. "While the Code of Social Security was introduced in 2020, it is great to see financial allocation being made towards it. Additionally, government-backed ID cards for gig workers would help formalize the profession in a manner," he said.

"The government taking up the responsibility for healthcare will encourage gig workers, and also reduce the financial burden from e-commerce and quick commerce platforms. While the compliance requirement for these may take time, once implemented they will have a positive impact on the economy," he added.

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