Budget 2025: Gig Workers to Get Health Insurance Under Government’s Flagship Scheme
10 February, 2025
Synopsis
- Finance Minister Nirmala Sitharaman's Budget 2025 brings significant healthcare benefits for gig workers.
- Nearly 1 crore gig workers to receive health insurance under Ayushman Bharat-PMJAY, providing ₹5 lakh coverage per family annually at 25,000+ empanelled hospitals
- Ministry of Labour & Employment receives ₹32,646 crore allocation, an 80% increase, with Employment Generation Scheme budget doubled to ₹20,000 crore.
- Implementation challenges include data sharing by aggregator platforms, scheme integration, and ensuring worker awareness and accessibility.
- Part of larger labour welfare focus including 37% increased funding for PM Shram Yogi Maandhan Yojana and expanded social security measures.
The Union Budget 2025 has introduced a groundbreaking step towards social security by extending healthcare benefits to gig workers, a rapidly growing workforce in India's economy. Finance Minister Nirmala Sitharaman’s announcement has been hailed as a transformative move, ensuring that nearly 1 crore gig workers across India will now receive health insurance coverage under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
Recognising the Gig Workforce
Gig workers are individuals engaged in short-term or flexible employment outside the traditional employer-employee framework. They include food delivery executives, ride-hailing drivers, e-commerce delivery personnel, and many more who play an important role in the digital economy. According to a NITI Aayog report, the gig workforce in India is expected to grow to 2.35 crore by 2030, making their inclusion in social security measures more critical than ever.
The Budget 2025 acknowledges this need and provides gig workers with identity cards, registration on the e-Shram portal, and healthcare access under AB-PMJAY. This initiative not only recognizes gig workers as part of the formal workforce but also strengthens the safety net for a sector that has long been excluded from traditional employment benefits.
Health Insurance Benefits Under AB-PMJAY
The inclusion of gig workers under Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) ensures access to quality healthcare for this vulnerable group. Here are the key highlights:
Health Cover: A sum insured of ₹5 lakh per family per year for secondary and tertiary care hospitalisation.
No Waiting Period: Coverage begins immediately without restrictions on pre-existing conditions.
Simple Registration: Gig workers can access these benefits based on their e-Shram portal registration and Universal Account Number (UAN).
This move is expected to provide much-needed relief to gig workers, who often face financial strain due to unexpected medical expenses.
Bridging the Gap in Universal Health Coverage
The decision to include gig workers under AB-PMJAY is a step toward achieving universal health coverage in India. As per NITI Aayog, gig workers fall under the category of the “missing middle” - individuals who are not poor enough to qualify for government-funded health insurance but cannot afford private health insurance. By extending healthcare benefits to this group, the government is addressing a significant gap in India’s healthcare system.
Challenges and the Way Forward
While the announcement is a significant milestone, the success of this initiative will depend on its seamless implementation. Experts highlight a few challenges that need to be addressed:
Data Sharing by Aggregators: For effective implementation, aggregator platforms like Swiggy, Zomato, and Uber must share worker data with the government to ensure comprehensive coverage.
Integration of Schemes: The e-Shram portal must be integrated with existing welfare schemes to provide holistic benefits.
Awareness and Accessibility: Efforts should be made to ensure gig workers are aware of the benefits and know how to access them.
A Historic Budget for Labour Welfare
The inclusion of gig workers in healthcare schemes is part of a larger focus on labour welfare in Budget 2025. The Ministry of Labour & Employment has received a record allocation of ₹32,646 crore for FY 2025-26, an 80% increase from last year’s revised estimates. This allocation will support several initiatives, including:
Doubling the budget for the Employment Generation Scheme (ELI) from ₹10,000 crore to ₹20,000 crore.
Increasing funds for the PM Shram Yogi Maandhan Yojana by 37%.
Expanding social security measures to other unorganized sectors.
A Step Toward Inclusivity
The inclusion of gig workers under AB-PMJAY is a transformative move that highlights the government’s commitment to inclusivity and social security. By recognizing gig workers as a vital part of India’s economy and addressing their vulnerabilities, the Budget 2025 paves the way for a more equitable workforce. As India’s gig economy continues to grow, such initiatives will play a critical role in ensuring the security and well-being of millions of workers.
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