NEW DELHI, Feb 2: The Union Labour & Employment Minister, Mansukh Mandaviya, expressed enthusiasm on Sunday regarding the budget allocation for labour welfare, highlighting that the introduction of social security for gig workers is a groundbreaking advancement.
On Saturday, Finance Minister Nirmala Sitharaman introduced a social security initiative for one crore gig workers who are engaged with online platforms, stating that the government would issue identity cards to these workers and support their registration on the e-Shram portal.
This initiative will enable platform workers to benefit from various social welfare programs offered by different government agencies.
According to a statement from the Labour Ministry, the Union Budget 2025 represents a significant step in India’s labour welfare efforts by establishing a comprehensive framework aimed at granting formal recognition and social security benefits to gig workers.
Praising the decision, Mandaviya emphasized the government’s dedication to the welfare of over one crore gig workers nationwide.
He stated, “The gig workforce is a crucial component of India’s modern economy, enhancing innovation and efficiency across digital platforms. Acknowledging their contributions, the government’s initiative to grant them identity cards, facilitate e-Shram registration, and provide healthcare security under PM Jan Arogya Yojana is a pivotal measure for their social security and overall well-being.”
Moreover, Mandaviya remarked that the government is committed to extending social security benefits to workers in other unorganized sectors, ensuring respect, security, and prosperity for all workers in the nation.
The emergence of digital platforms has transformed employment, offering new avenues for flexible work. The gig and platform economy in India has seen rapid growth, with a report from NITI Aayog titled ‘India’s Booming Gig and Platform Economy’ predicting the workforce in this sector will exceed 1 crore by 2024-25 and expand to 2.35 crore by 2029-30.
In recognition of this transformation, the Code on Social Security, 2020 (CoSS, 2020) for the first time defined terms such as ‘aggregator,’ ‘gig worker,’ and ‘platform worker,’ while also introducing legal provisions aimed at incorporating gig and platform workers into social security frameworks.
This structure has provided the foundation for well-organized welfare measures tailored to meet the evolving needs of this agile workforce.
The Union Budget 2025-26 represents a pivotal milestone in this journey, launching a comprehensive initiative to formally recognize and offer social security benefits to gig workers based on platforms.
The Finance Minister has unveiled strategies to facilitate identification through unique identity cards, streamline registration on the e-Shram portal, and guarantee healthcare access under PM Jan Arogya Yojana.
These initiatives will further fortify the safety net for over 1 crore gig workers across various sectors.
A pilot project has already been initiated by the Ministry of Labour & Employment to register platform workers and aggregators on the e-Shram portal.
An Aggregator Module has also been piloted, allowing digital platforms to onboard themselves and their workforce into India’s national database for unorganized workers.
As part of this initial phase, four leading aggregators—Urban Company, Zomato, Blinkit, and Uncle Delivery—have successfully registered.
The Budget 2025 announcement signifies a substantial expansion of this initiative, enabling a large-scale rollout and institutionalizing these efforts. With increased resources, the initiative aims to ensure that all gig and platform workers have access to vital social security benefits through the e-Shram portal, underlining the government’s commitment to protect the welfare of this workforce.
The ministry remains dedicated to executing these initiatives smoothly, addressing operational challenges, and enhancing collaboration with digital platforms.
By merging initial groundwork with extensive policy backing, the government seeks to build a robust safety net for gig workers, ensuring their well-being and security in India’s changing employment market.
Continuing its emphasis on labour welfare and job creation, the Union Budget has allocated a record Rs 32,646 crore for the Ministry of Labour & Employment in FY26—the highest allocation to date and approximately 80 percent more than the revised estimates of the previous year.
Mandaviya stated, “Our priority is firmly on the newly introduced Employment Generation Scheme, for which the budget allocation has been increased from Rs 10,000 crore to Rs 20,000 crore. The allocation for the Employees’ Pension Scheme has been raised by Rs 300 crore, and for the PM Shram Yogi Maandhan Yojana, it has increased by 37 percent compared to last year.” (PTI)
