The Indian government has unveiled promising measures for gig workers during Budget 2025, marking a significant step toward improving their social security and health coverage. Finance Minister Nirmala Sitharaman announced on Saturday the implementation of health insurance under the Pradhan Mantri Jan Arogya Yojana (PMJAY) aimed at approximately one crore gig workers across the country.
This announcement came during the Union budget speech where Sitharaman emphasized the pivotal role gig workers play in the modern economy. They provide flexibility and mobility, significantly contributing to various sectors including delivery services and ride-sharing. The identity cards for gig workers will be issued as part of their registration on the e-Shram portal, ensuring they have access to these newly announced healthcare benefits.
Gig workers, characterized by their short-term and flexible employment contracts, have become increasingly prevalent over the last decade. This category includes independent contractors, delivery agents, cab drivers, and many others working for platforms such as Zomato, Blinkit, and Swiggy Instamart. The need for health benefits for this segment has surged, with the government now recognizing their contribution through this engagement with the PMJAY scheme.
What is PMJAY? The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, launched in September 2018, is billed as the world's largest health insurance program. It provides coverage of up to ₹5 lakh per year for eligible families, aiming to deliver health services to those typically left out of traditional employment benefits. With roughly 14.74 crore families already covered, the initiative addresses the vulnerabilities present within India’s health system.
Notably, the PMJAY scheme has no restrictions based on family size, age, or gender. This inclusive approach is expected to directly benefit gig workers who often lack comprehensive health insurance. The initiative aims at mitigating the financial burden of medical expenses, which has been particularly pressing for at least six crore Indians annually who risk falling below the poverty line due to healthcare costs.
Alongside hospitalization, PMJAY offers ample coverage for pre- and post-hospitalization needs, including expenses related to diagnostics and medicines up to 3 days before hospitalization and 15 days post-discharge. A wide range of 1,929 medical procedures are covered, encompassing everything from surgeries to doctor fees.
The Economic Survey released prior to the budget highlighted the growing impact of gig work within the Indian economy, estimating it will encompass 4.1% of the total workforce, equalling approximately 23.5 crore people by 2030. This trend signals the government's timely response to the needs of this rapidly growing and often vulnerable labor force.
The Telangana Gig and Platform Workers Union welcomed Finance Minister Sitharaman's initiatives, urging the government and aggregator companies to expedite the collection of data, which is necessary for gig workers to utilize the scheme. Their prompt acknowledgment indicates the workforce's anticipation and optimism about the expected changes.
Overall, the provisions laid out for gig workers through the PMJAY scheme and the recognition of their needs within the social security framework are revolutionary moves aimed at fostering inclusivity within India's workforce. These changes represent more than just healthcare provisions; they signify the government's commitment to addressing the challenges faced by informal workers.
By supporting gig workers with identity cards and health coverage, the government is not only enhancing their lives but also solidifying the foundation for more expansive social protections across the economy. The future looks promising as India’s labor market begins to evolve, tentatively stepping toward broader health equity.