In a significant push toward recognizing and securing the country’s gig workforce, the Indian government has announced major policy interventions in the Union Budget 2025. With an estimated 10 million gig workers currently contributing to India’s digital and service economy—and projections suggesting this number could reach 23.5 million by 2030—this move marks a critical moment in labor policy.
Bringing Gig Workers into the Formal Fold
One of the standout measures in the budget is the formal registration of gig workers on the e-Shram portal. Launched in 2021, e-Shram serves as a national database for unorganized workers, offering access to social security benefits and government welfare schemes. Until now, gig workers—often classified as ‘independent contractors’—have existed in a regulatory grey area, with limited access to employment rights or protections.
With this registration, gig workers will now receive unique ID cards, which can facilitate their inclusion in social welfare schemes, streamline policy implementation, and provide a clearer picture of the gig economy’s scope. This measure aligns with ongoing legislative efforts, such as the Code on Social Security, which seeks to extend benefits like pensions, maternity leave, and accident insurance to gig workers.
Health Security Under PM-JAY
Perhaps the most immediate and impactful announcement is the extension of the Pradhan Mantri Jan Arogya Yojana (PM-JAY) to gig workers. PM-JAY, the world’s largest government-funded healthcare scheme, provides up to ₹5 lakh per year for secondary and tertiary medical expenses. For a workforce that operates without employer-sponsored health insurance, this coverage represents a crucial safety net.
Healthcare costs have long been a source of financial distress for gig workers, particularly those engaged in physically demanding jobs such as delivery personnel and ride-hailing drivers. With this inclusion, gig workers will no longer have to shoulder the burden of emergency medical expenses alone.
Industry Reactions and Expert Opinions
The budget’s focus on gig workers has received widespread praise from industry leaders and labor economists. Balasubramanian A, Senior VP and Business Head at TeamLease, called the measures “a long-awaited step in the right direction,” emphasizing that recognizing gig workers as a distinct workforce is critical for ensuring their long-term economic security.
Aadit Palicha, Co-Founder and CEO of Zepto, echoed this sentiment: “The introduction of social security measures for gig workers is a key highlight, acknowledging their valuable contribution to the economy.”
However, concerns remain over how these policies will be implemented. The gig economy thrives on flexibility, and many platforms have resisted attempts to impose rigid employment structures. The challenge ahead will be balancing worker protections with the business models that have fueled the sector’s rapid growth.
The Bigger Picture: Labor Rights in the Gig Economy
While these announcements mark a crucial step forward, they do not resolve all the challenges faced by gig workers. A recent study by Fairwork India assessed various digital platforms on criteria such as fair pay, working conditions, and dispute resolution. The results were concerning: most platforms failed to guarantee minimum wage protections, and only a few, such as BigBasket and Urban Company, implemented policies ensuring workers earned at least the local minimum wage after expenses.
Moreover, industry experts have pointed out that while healthcare coverage is essential, financial security remains a pressing issue. There is still no clarity on pension contributions or paid leave for gig workers, leaving them vulnerable to income instability. The Rajasthan government’s pioneering social security fund for gig workers, requiring platforms to contribute a portion of revenue toward worker benefits, could serve as a model for broader national implementation.
Looking Ahead: A Test of Implementation
The success of these policies will hinge on their execution. Ensuring that gig workers are aware of their entitlements, simplifying the registration process, and preventing bureaucratic hurdles will be critical. Additionally, the government must continue to engage with industry stakeholders to develop frameworks that provide both security and flexibility.
As India moves toward a more inclusive labor market, the 2025 budget’s provisions for gig workers signal a turning point. Whether these measures translate into tangible improvements on the ground remains to be seen, but for millions of gig workers, the promise of recognition and protection is a step in the right direction.
—With insights from industry experts and policy analysts.