Budget 2025: Gig workers to receive health insurance under govt's flagship scheme

New Delhi: Gig workers will be provided healthcare under the government’s flagship health assurance scheme Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), union finance minister Nirmala Sitharaman announced in her Budget speech on Saturday.

The Economic Survey released on Friday highlighted that underemployment remains an issue and the gig economy is set to grow to 235 million, or 4.1% of total workforce, by FY30.

Currently, the National Health Authority (NHA) is the agency that implements the world’s largest health insurance scheme, which provides health cover of ₹5 lakh per family per year. Under the terms of AB-PMJAY, there is no waiting period and no restrictions on pre-existing health conditions.

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Over the past few years, NHA has proposed the government expand the coverage of AB-PMJAY to eligible people who are not presently covered by any health security scheme. The National Health Policy (2017) has also highlighted the need for universal health coverage. Including gig workers – part of India’s “missing middle” – in AB-PMJAY will be a step towards achieving this.

Stuck in the middle

NITI Aayog defines the “missing middle” of India’s population as those who are not so poor as to be eligible for government-funded health insurance, and not rich enough to buy private health insurance by themselves.

According to the available data, only around 10% of India’s population – 250 million people – have bought private health insurance, while nearly 60% (750 million people) are estimated to be covered by government-funded schemes. The remaining 30% – more than 400 million people – still lack any form of health insurance, according to a NITI Aayog report.

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“Not having the health coverage enjoyed by many people who are in traditional full-time employment, gig workers are particularly vulnerable to medical expenses. These costs can sometimes be catastrophic. As they often lack job security and associated benefits of full-time employment, government-backed coverage could provide a crucial safety net,” said Dr Rajeev Jayadevan, public health expert and past president of the Indian Medical Association, Cochin.

Balasubramanian A, senior vice-president & business head at recruitment platform Teamlease Services Limited said, “Collecting the personal information of one crore gig workers, proving them with an ID card on the eShram portal and thereby enabling coverage through the Jan Arogya Scheme is a long-awaited step in the right direction. It officially recognises gig workers as part of the employment ecosystem and provides them with much-needed social security.”

AB-PMJAY was launched in September 2018 with the aim of providing free, affordable and accessible healthcare services to around 107.4 million poor and vulnerable families. Over the past four years, NHA has increased the number of beneficiaries to 147.4 million families (around 700 million individuals) in 34 states and Union Territories. The government expanded the scheme to include all citizens aged 70 and above.

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