States like Karnataka have launched welfare measures for gig workers through legislation. Similar social security measures were announced in the Union budget 2025.
Published Feb 01, 2025 | 2:41 PM ⚊ Updated Feb 01, 2025 | 2:41 PM
Nirmala Sitharaman ahead of the budget. (Supplied)
It seems the Union government took a cue from states like Karnataka to extend social security measures for the welfare of gig workers. Union budget 2025 saw Finance Minister Nirmala Sitharaman acknowledge the need to protect gig workers.
In an era of evolving work structures, gig workers have emerged as a crucial pillar in the fast-paced services economy.
Gig workers, who play a central role in sectors such as delivery services, ride-hailing, and other platform-based work, often find themselves outside the formal workforce structure, with limited access to social security benefits.
Recognizing this, the Union Budget 2025 has taken a significant step towards ensuring the welfare of these workers by announcing a comprehensive social security scheme aimed at providing them with identity cards, healthcare, and registration on the e-Shram portal.
This initiative, projected to benefit nearly one crore gig workers, is expected to integrate gig workers into the broader social security ecosystem and ensure that they can access healthcare, social security benefits, and welfare programs that were previously out of reach.
Union Finance Minister Nirmala Sitharaman’s announcement in the Budget signals a pivotal moment for the gig economy in India.
#UnionBudget2025: Identity cards and registration on the e-shram portal will be introduced for gig workers, with 1 crore workers set to receive health coverage under the scheme.
UPI-linked credit cards will be introduced for street vendors, enabling easier access to digital… pic.twitter.com/53aJjV3wax
— South First (@TheSouthfirst) February 1, 2025
A key element of the scheme is the inclusion of healthcare benefits through the PM-Jan Arogya Yojana, which is expected to cover one crore gig workers.
By extending this healthcare initiative to gig workers, the government seeks to tackle the significant challenge of medical expenses that often burden those in the informal economy.
Since gig workers typically don’t have employer-sponsored healthcare, this move provides them with a safety net, ensuring they can access necessary care without facing overwhelming financial strain.
This initiative mirrors some of the steps taken by the Karnataka government in July 2024, which has been proactive in recognizing the needs of gig workers.
The state introduced the Karnataka Platform-Based Gig Workers Bill, 2024, a pioneering legislation aimed at safeguarding the rights of gig workers.
The bill is designed to establish a welfare board and fund for gig workers, offering a structured framework to protect their rights and interests.
The bill also mandates fair contracts for gig workers, ensuring that they are not exploited by aggregators. Furthermore, it stresses the importance of transparency and timely payments, addressing some of the most common grievances raised by workers in the sector.
In addition to the legislative framework, Karnataka has also rolled out the Gig Workers Insurance Scheme, which provides free insurance coverage for gig workers involved in delivery services.
This scheme offers critical benefits such as accidental death benefits, permanent disability benefits, and hospital expense reimbursements, ensuring that gig workers have access to financial support in case of unforeseen accidents. To be eligible, workers must be between 18 and 60 years old, and the scheme covers accidents both on and off duty.
The state government has also proposed a welfare fund for gig workers, which will be funded by a 1-2 percent transaction fee levied on aggregator platforms like Swiggy and Zomato.
This initiative aims to create a sustainable source of funding to support the welfare of gig workers and ensure that their needs are adequately addressed.
The announcement in the Union Budget 2025 aligns closely with state-level initiatives like those in Karnataka, and together, they represent a transformative shift towards recognizing the vital role that gig workers play in the economy.
By extending social security, healthcare, and financial support to these workers, the government is setting a precedent for the future of the gig economy in India.
As the sector continues to grow, it is crucial that the welfare of its workers is not overlooked, and these measures offer a solid foundation for a more inclusive and supportive ecosystem for gig workers across the country.
(Edited by Sumavarsha)
