India Gears Up To Launch Landmark Social Security Scheme For Gig Workers

Last Updated:June 25, 2025, 10:11 IST

The government plans to extend benefits of Ayushman Bharat to nearly one crore gig and platform workers

The government is also actively considering adding pension benefits as part of a broader social security package for gig workers.

In a major step toward formalising protection for India’s growing gig economy, the government is preparing to roll out a dedicated social security scheme for gig and platform workers under the Pradhan Mantri Jan Arogya Yojana (PM-JAY)—the world’s largest publicly funded health insurance program.

The announcement, made as part of the Union Budget 2025, marks a watershed moment for the country’s informal workforce, which has long remained outside the ambit of structured welfare systems.

PM-JAY, also known as Ayushman Bharat, was launched by Prime Minister Narendra Modi on September 23, 2018, and currently provides Rs 5 lakh health insurance per family per year to over 50 crore citizens. Now, the government plans to extend its benefits to nearly 1 crore gig and platform workers—a category that includes delivery personnel, drivers, and freelance service providers across digital platforms.

According to sources in the Ministry of Labour and Employment, over 20 lakh gig workers have already registered on the e-Shram portal and will soon be issued unique identification numbers that will link them to welfare benefits. To accelerate this drive, the government has mobilised labour offices, community centres, and EPF offices, alongside a widespread awareness campaign.

A formal notification has also been issued to all platform aggregators, directing them to register both themselves and their workers under the upcoming scheme—a move that puts responsibility on companies like ride-sharing apps and food delivery platforms to ensure compliance.

India’s gig economy is growing rapidly and is projected to reach 23.5 million workers by 2030. While it has created flexible employment opportunities, especially in sectors like e-commerce, logistics, and transport, the workforce remains highly vulnerable.

These workers face low and unstable incomes, often below minimum wage and grapple with lack of job security or benefits such as paid leave, health cover, or pensions. Opaque digital systems with limited accountability or recourse remain a big hindrance. Long work hours and difficult conditions, safety concerns, particularly for women in late-hour or isolated gigs are some other challenges.

Despite their essential contribution to the economy, gig workers have so far operated largely outside the formal social security net.

Sources familiar with the matter reveal that the final contours of the scheme are in advanced stages of preparation, with most of the groundwork already complete.

“While many countries are still debating how to bring gig workers under social welfare coverage, India has taken a lead by moving swiftly toward a formalised scheme," said a senior official involved in the process.

It is learnt that the scheme could be launched by the end of 2025, but for implementation to begin, an amendment to the existing labour codes may be required — a matter that is currently under consideration.

The government is also actively considering adding pension benefits as part of a broader social security package for gig workers. Stakeholder consultations are underway, involving policymakers, labour experts, platform companies, and worker representatives to finalise the modalities.

The ambitious move is being seen as part of the Modi government’s broader effort to bring economic dignity and structured support to workers on the margins of India’s labour economy. If implemented successfully, the scheme could become a global benchmark in gig worker welfare—offering a scalable model for other countries facing similar challenges in the digital labour space.

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