New ID Cards for Gig Workers Announced: All You Need to Know

In a landmark move during the Union Budget 2025, Finance Minister Nirmala Sitharaman announced significant measures to formalize and support India’s rapidly growing gig economy. Recognizing the critical role gig workers play in powering the modern services sector, the government has introduced a comprehensive initiative that includes issuing identity cards and expanding access to social security benefits.

Key Announcements

1. Issuance of Identity Cards: Gig workers across various sectors—from ride-sharing and food delivery to freelance services—will now receive unique identity cards. This initiative aims to provide formal recognition to gig workers, making it easier for them to access government welfare schemes and financial services. The ID cards will serve as an official document verifying their employment status within the gig economy.

2. Registration on the e-Shram Portal: To streamline the process of identification and ensure that gig workers can access the benefits they are entitled to, the government will register these workers on the e-Shram portal. This national database for unorganized workers will facilitate better policy implementation and targeted welfare measures.

3. Healthcare and Social Security Benefits: Gig workers will also gain access to healthcare services under the Pradhan Mantri Jan Arogya Yojana. This provision will help cover health-related expenses, providing much-needed financial security. In addition to healthcare, the initiative aims to extend life and disability cover, health and maternity benefits, and old-age protection, ensuring comprehensive social security for gig workers.

The Impact on Gig Workers

These measures are expected to benefit around 10 million gig workers nationwide. By integrating them into the formal economy, the government is not only recognizing their contributions but also addressing the vulnerabilities that come with gig-based employment, such as lack of job security, healthcare, and retirement benefits.

The initiative has received widespread praise from both industry experts and gig workers themselves. For instance, Jitendra Hota, a food delivery executive in Bhubaneswar, expressed his relief and optimism, stating that the new healthcare benefits and official ID cards will provide much-needed support and security in his day-to-day life.

A Step Towards Inclusive Growth

This move underscores the government’s commitment to inclusive development. By bringing gig workers under the umbrella of formal recognition and social security, the initiative aims to create a more equitable and resilient economy. It also sets a precedent for other countries grappling with how to support their gig workforce amid the rise of the digital economy.

In conclusion, the announcement of identity cards for gig workers in the Union Budget 2025 is more than just an administrative change. It is a significant step towards empowering a vital segment of India’s workforce, ensuring they receive the recognition, protection, and benefits they deserve. This progressive policy will likely have far-reaching effects, not just on the gig economy but on the broader landscape of labor rights and social welfare in India.