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FM Nirmala Sitharaman's Union Budget 2025-26 includes key measures for gig workers. Photograph: (Ground Report/Canva)
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced measures to formalise the gig economy and enhance security for gig workers in India. This move is expected to boost interest in gig work, especially on platforms like Swiggy, Zomato, Amazon, and Flipkart.
Registration and identity cards for gig workers
The budget announced health insurance for gig workers under the Pradhan Mantri Jan Arogya Yojana (PM-JAY), providing coverage of up to ₹5 lakh per family per year with no waiting period or restrictions on pre-existing conditions. Industry insiders believe this will encourage more people to take up gig work by offering healthcare security.
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Gig workers will be provided health insurance under the Pradhan Mantri Jan Arogya Yojana (PM-JAY), offering coverage of up to ₹5 lakh per family annually.
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One crore gig workers will receive official identity cards, which will be registered on the e-Shram portal, formalising their status and eligibility for welfare benefits.
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A new social security scheme for gig workers will cover death and disability, implemented through public-private partnerships (PPP).
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The formalisation and inclusion of gig workers in the organised economy are expected to increase interest in gig work, especially in the delivery, e-commerce, and logistics sectors.
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States will be encouraged to adopt the gig worker model, with assistance available from the India Infrastructure Project Development Fund (IIPDF).
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Industry leaders believe that recognising gig work as formal employment will provide employment benefits and encourage more people to take advantage of the growing gig economy.
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The number of gig workers in India is projected to grow from 7.7 million in 2024 to 23.5 million by 2029-30, reflecting the crucial role of gig workers in the economy.
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Many platforms like Zomato and Swiggy already offer health insurance, and the government’s move to include gig workers in PM-JAY will further strengthen these benefits.
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Zomato has reported a significant increase in medical claims for delivery partners, spending ₹53 crore annually on non-accidental medical expenses.
In her budget speech, Sitharaman said, "Gig workers of online platforms drive the 'New Age' services economy. Recognising their contribution, our government will arrange their identity cards and registration on the e-Shram portal."
Gig work was formalised, and health benefits increased
Industry leaders welcomed these moves, saying they will give gig work the status of formal employment. Balasubramanian Anantha Narayanan, Senior Vice President at Teamlease Services Limited, said, “Officially recognising and formalising the gig economy is a step in the right direction. Including gig workers in the organised ecosystem will help them get employment benefits, encouraging more people to take advantage of growing opportunities.”
Madhav Krishna, CEO of Vahan.ai, a blue-collar recruitment platform, added, "Issuing identity cards will give gig work the status of actual jobs. Food and grocery delivery, e-commerce, and logistics firms will benefit from formalisation."
The gig economy is crucial to India’s workforce, with platforms like Swiggy, Zomato, and Amazon employing millions of delivery and warehouse workers. NITI Aayog projects gig workers in India to grow from 7.7 million in 2024 to 23.5 million by 2029-30. They are vital to online commerce, contributing to faster deliveries and customer satisfaction.
While many platforms provide health insurance to workers, the government’s move to cover gig workers under PM-JAY is expected to offer more comprehensive benefits. Zomato reported a rise in medical claims for its delivery partners, with ₹53 crore spent annually on medical expenses unrelated to accidents.
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