2025 Budget for Gig Workers
On 1st Feb. 2025 the finance minister of India, Nirmala Sitharaman presented the budget. It has many provisions for many different sections of the society.
Today we will discuss the measures taken by the ministry for the welfare of gig workers. To learn more about it, such as who gig workers are, what benefits they will get, eligibility criteria, how to avail of the benefits, etc., read the article.
Who are Gig Workers?
Gig workers are those individuals who are engaged in temporary and flexible jobs, such as delivery personnel, cab drivers, freelancers, etc.
According to estimates by 20230 India will have approximately 4.1% gig workers. So the ministry has taken steps to support them by providing social security and health care benefits.
Provisions for Gig Workers in the 2025 Budget
In the 2025 budget, a social security scheme was announced for one crore gig workers. The key highlights include:
Investing in Street Vendors and Online and Urban Workers
🔶 Gig workers of online platforms to be provided with identity cards and registration on e-Shram portal
🔶 Scheme for socio-economic upliftment of urban workers to be implemented
🔶 PM SVANidhi scheme to be revamped… pic.twitter.com/eBg4SwhRXx
— Ministry of Finance (@FinMinIndia) February 1, 2025
1) Health Insurance Coverage:
Investing in Street Vendors and Online and Urban Workers
🔶 Gig workers of online platforms to be provided with identity cards and registration on e-Shram portal
🔶 Scheme for socio-economic upliftment of urban workers to be implemented
🔶 PM SVANidhi scheme to be revamped… pic.twitter.com/eBg4SwhRXx
2) Formal Recognition:
The government has planned to issue identity cards to gig workers. It will help in maintaining a national registry through the e-Shram portal.
How to Avail the Benefits?
To avail these benefits such as AB-PMJAY, gig workers need to follow these steps:
1) Registration on e-Shram Portal:
First of all, visit the official e-Shram portal. Fill in all the required details and complete the registration process. After the registration process is completed, you will get a unique identification number.
2) Verification:
You have to provide all the necessary documents needed by the e-Shram portal. It is necessary to receive the identity card issued by the government. All your documents must be properly verified.
3) Accessing Health Insurance:
Once you have properly registered, now as a gig worker you are eligible for health insurance coverage under AB-PMJAY.
Eligibility Criteria
Although the government hasn't yet mentioned any specific eligibility criteria, some conditions may apply.
1) Citizen of India
2) Applicable only to individual workers
Table: Comparison of Benefits Before and After Budget 2025
| Benefit | Before Budget 2025 | After Budget 2025 |
|---|---|---|
| Health Insurance | Not Available | ₹5 lakh per family per year |
| Formal Recognition | Limited | Issuance of government ID cards |
| Social Security Schemes | Inaccessible | Inclusion in welfare initiatives |
Pros and Cons of the Initiative
Pros:
1) It provides safety for gig workers by ensuring them healthcare benefits.
2) It acknowledges gig workers as part of the formal economy. It will potentially lead to more structured support in the future.
3) As it provides support for healthcare, it will reduce the financial burden of medical expenses on individuals.
Cons:
1) It might be a difficult task to ensure that all the gig workers are registered and they all are aware of the benefits.
2) In the long run it might not be easy, as large amounts of funds will be required.
In all, like many other classes this time government in their budget has taken a step to help individuals or gig workers provide better healthcare facilities and raise their standard of living. This scheme in the long run will help in the overall growth of the gig workers.
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