Union Budget 2025: A Health Insurance Surprise to Gig Workers

On February 1st, the Union Budget for FY 25-26 was announced by Finance Minister Nirmala Sitharaman. She has announced great news in favour of the Indian economy. It is very encouraging to note that our government considers platform and gig workers an important part of India’s urban landscape.

In the budget 2025, Finance Minister Nirmala Sitharaman announced that gig workers will get health insurance up to 5 Lakh under the Ayushman Bharat Scheme.

The significance of this announcement cannot be overstated. How?

Let me tell you here.

For too long, gig workers - delivery executives, ride-hailing drivers, freelancers, and numerous others - have navigated a world of variable income and often unpredictable work hours, all while lacking the fundamental protections afforded to traditional employees. The absence of employer-provided health insurance has been a particularly vulnerable point. A sudden illness or accident could plunge these individuals into financial hardship, impacting not only their livelihoods but also their families.

Gig workers provide great dynamism to the new-age services economy. Recognising their contribution, our government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under the PM Jan Arogya Yojana, the Finance Minister said in her Budget speech.

The Budget 2025 proposes to change this narrative by extending health insurance coverage to approximately 1 crore gig workers under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (PMJAY). This move, while still subject to implementation details, has the potential to be a game-changer. PMJAY provides coverage for secondary and tertiary hospitalization, offering a much-needed shield against catastrophic healthcare expenses.

It acknowledges the growing importance of the gig economy and, more importantly, recognizes the vulnerability of its workforce. By bringing gig workers under the umbrella of a national health insurance scheme, the government is taking a crucial step towards providing them with a basic level of social security.

There are several questions arising regarding Union Budget 2025 health insurance in India.

Like,

• How will the government identify and register these gig workers, given the often informal nature of their work?
• What will be the premium structure and how will it be financed?
• Will there be a co-contribution model involving the gig platforms?

Clarity on these aspects is crucial for the effective implementation of this ambitious plan.

Well, yes we are waiting for the answers. But I am sure that in a few days, we will get the answers. However, the Trade Union Bharatiya Mazdoor Sangh has revealed the registration on the e-Shram portal. This portal will ensure the recognition of gig workers.

Other Important Budget 2025 Decisions in the Healthcare Sector

The Indian Union Budget 2025 has brought some significant developments in other healthcare sectors. Here are the key highlights:

• Rs. 99,858.56 crore was allocated for developing, maintaining and improving the healthcare system of India.
• Rs 2,445 crore for PLI for the pharmaceutical industry.
• Rs 9,406 crore has been allocated for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY).
• Rs 4,200 crore for Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM).
• Rs 37,226.92 crore to the National Health Mission (NHM).
• Rs 5,200 crore was allocated for All India Institute of Medical Sciences (AIIMS), Delhi.

Bottom Line

Overall, the Union Budget 2025 demonstrates the government’s commitment to strengthening the healthcare sector in India. The initiatives related to health insurance aim to expand coverage, improve affordability, and enhance the quality of healthcare services for all citizens in India.

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