The Indian government is developing a healthcare scheme under the PM Jan Arogya Yojana (PM-JAY) to provide benefits to 1 crore gig workers, Expenditure Secretary Manoj Govil revealed. In her Budget 2025 announcement, Finance Minister Nirmala Sitharaman said gig workers would receive identity cards and health coverage through the e-Shram portal.
Govil, in an interview with PTI, explained that the Finance Ministry is working closely with the Labour Department and other concerned ministries to finalize the parameters and implementation of the scheme. “The scheme could either be a 100% Central Sector initiative or a centrally sponsored scheme, where costs would be shared in a 60:40 ratio between the Centre and states,” Govil stated.
Addressing Social Security for Gig Workers
The government’s initiative comes in response to the growing role of the gig economy in India. Millions of workers in sectors like ride-hailing, food delivery, and freelance services lack formal job security and access to healthcare. This scheme aims to address these challenges by providing gig workers with affordable and reliable health coverage, ensuring financial protection during medical emergencies.
The e-Shram portal, launched earlier to maintain a database of unorganized sector workers, will facilitate the registration and identity verification of gig workers under the healthcare initiative.
Details of the Healthcare Scheme
The proposed scheme under PM-JAY will offer gig workers health insurance coverage of ₹5 lakh per family per year, similar to the benefits provided to 12 crore poor and vulnerable families under the current program. The plan is expected to reduce out-of-pocket healthcare expenses for gig workers and promote better access to secondary and tertiary medical care.
According to Govil, discussions are underway to determine the operational structure, funding requirements, and eligibility criteria for beneficiaries. “Once the scheme details are finalized, the cost will be calculated,” Govil added.
Expanded Healthcare for Senior Citizens
In a related development, the Union Cabinet had, in September 2024, approved universal health coverage under PM-JAY for all senior citizens aged 70 and above, regardless of income. This expansion aims to ensure that India’s elderly population receives adequate healthcare support.
Gig Economy’s Growing Importance
India’s gig economy has seen exponential growth in recent years, driven by platforms offering on-demand services across various industries. However, a lack of social security remains a significant challenge for workers in this sector. Industry experts have welcomed the government’s move to extend PM-JAY benefits to gig workers, stating that healthcare access will enhance their productivity and overall well-being.
By strengthening healthcare infrastructure and social welfare for gig workers, Budget 2025 reaffirms the government’s commitment to inclusive growth and economic resilience in the digital economy.
