Union Budget 2025: Gig Workers to Get Social Security; Record Labour Welfare Allocation

The Union Budget for 2025 has set a transformative course for India’s labour welfare landscape, focusing on gig workers and employment generation. A key highlight is the announcement of social security benefits for gig workers, including identification cards, healthcare access, and e-Shram registration.

Additionally, the budget allocates a record ₹32,646 crore to the Ministry of Labour & Employment, a significant rise from previous years, reflecting the government’s commitment to workers’ well-being.

Who is a Gig Worker?

A gig worker is someone who takes part in short-term, flexible jobs or tasks, often through digital platforms or as independent contractors. Unlike traditional employees, gig workers don’t have long-term contracts or benefits typically associated with permanent jobs.

They can work for multiple employers and earn based on the tasks they perform, such as driving for ride-sharing services, freelance writing, delivery services, or other on-demand jobs. This growing workforce plays an increasingly important role in many economies, including India’s.

Gig Workers to Receive Social Security Benefits

The Union Budget 2025 brings significant news for India’s growing gig workforce, extending social security benefits for the first time.

Union Minister for Labour & Employment, Dr. Mansukh Mandaviya, praised the government’s move, which aims to empower nearly 1 crore gig workers by providing identity cards, registration on the e-Shram portal, and healthcare coverage under PM Jan Arogya Yojana.

This initiative aims to ensure the welfare and dignity of the gig workforce.

The Growth of India’s Gig Economy

India’s gig and platform economy has witnessed rapid expansion, with the workforce projected to reach 1 crore in 2024-25 and 2.35 crore by 2029-30. The government’s recognition of gig and platform workers is a crucial step in acknowledging their contribution to the economy.

The Code on Social Security, 2020, for the first time, legally recognised gig workers and introduced provisions to ensure their inclusion in social security benefits.

Comprehensive Framework for Gig Workers’ Welfare

The announcement in the Union Budget 2025 builds on the progress made by the government’s earlier steps, such as the pilot initiatives to register gig workers and aggregators on the e-Shram portal.

Four leading aggregators—Urban Company, Zomato, Blinkit, and Uncle Delivery—have already registered.

The Ministry of Labour & Employment aims to scale this initiative, ensuring every gig worker has access to critical social security benefits.

Record Budget Allocation for Labour Welfare

In another significant move, the Union Budget has allocated ₹32,646 crore to the Ministry of Labour & Employment for FY 2025-26, a historic increase of nearly 80% from the previous year’s revised estimates.

This allocation includes a boost to the Employment Generation Scheme (ELI), which will receive ₹20,000 crore, double the previous year’s allocation.

Moreover, increased allocations for the Employees’ Pension Scheme and PM Shram Yogi Maandhan Yojana signal the government’s continued focus on workers’ welfare.

Focus on Empowering India’s Workforce

Dr. Mandaviya expressed gratitude for the record budget and emphasised that it will strengthen initiatives for worker welfare, especially in the unorganised sector. By improving the social security framework for gig workers and expanding employment schemes, the government is prioritizing worker security and well-being in an ever-evolving economy.

With this historic budgetary allocation, the government is committed to creating a robust safety net for the country’s diverse workforce.

The government’s efforts to integrate gig workers into the social security system and its significant budgetary focus on labour welfare represent a strong commitment to providing social protection and dignity for all workers in the country.

Conclusion

The Union Budget 2025 marks a significant milestone for India’s workforce, particularly for gig workers who have long been excluded from formal social security measures. With the government’s commitment to providing identity cards, healthcare benefits, and e-Shram registration, gig workers are now being integrated into the national social security framework.

The record budget allocation for labour welfare further highlights the government’s focus on empowering workers across sectors, ensuring a stronger, more inclusive economy for the future. These transformative steps promise greater social protection and enhanced job security for millions of workers in the years to come.

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