Union Minister Applauds Budget with 80% Increase in Labour Welfare Allocation to Rs 32,646 Crore for Gig Workers
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Synopsis
Union Minister Mansukh Mandaviya commended the 2025-26 Union Budget for its 80% increase to Rs 32,646 crore for labour welfare and benefits for gig workers. The minister highlighted the Employment Generation Scheme and emphasized the importance of social security for over 1 crore gig workers in India.
Key Takeaways
- 80% increase in budget allocation for labour welfare.
- Focus on Employment Generation Scheme with a funding boost.
- Social security benefits extended to gig workers.
- Launch of e-Shram portal for worker registration.
- Strong commitment to unorganised sector workers.
New Delhi, Feb 2 (NationPress) Union Minister of Labour & Employment Mansukh Mandaviya on Sunday praised the Union Budget 2025-26 for the significant 80% increase in funding to an unprecedented Rs 32,646 crore for the Ministry of Labour & Employment, alongside new social security measures for gig workers.
"Our primary goal is the newly introduced Employment Generation Scheme (ELI), with its budget allocation doubling from Rs 10,000 crore to Rs 20,000 crore. Additionally, funding for the Employees’ Pension Scheme has been raised by Rs 300 crores and the PM Shram Yogi Maandhan Yojana has seen a 37% increase from the previous year," the minister stated.
He elaborated that the Budget marks a pivotal step for labour welfare in India, providing a thorough framework to offer formal acknowledgment and social security benefits to over 1 crore gig workers.
"The gig workforce represents a crucial element of India’s modern economy, fostering innovation and efficiency across digital platforms. The Finance Minister has revealed initiatives to help identify these workers through unique identity cards, simplify their registration on the e-Shram portal, and guarantee access to healthcare under the PM Jan Arogya Yojana. These actions will further fortify the safety net for over 1 crore gig workers across various sectors," he mentioned.
The Union Minister indicated that a pilot project has already commenced 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 integrate themselves and their workforce into India’s national database for unorganised workers. As part of this pilot, four prominent aggregators - Urban Company, Zomato, Blinkit, and Uncle Delivery - have already completed registration," he added.
The Union Minister highlighted that the Budget 2025-26 indicates a substantial growth of this initiative, enabling a large-scale implementation and institutionalising these efforts.
"With increased resources, this initiative will ensure that every gig and platform worker receives vital social security benefits through the eShram portal, reinforcing the Government’s dedication to protecting the interests of this workforce," he stated.
The minister reiterated that the Ministry is committed to the effective execution of these initiatives, addressing any operational hurdles, and enhancing collaboration with digital platforms.
He remarked that by merging initial groundwork with extensive policy backing, the Government aims to establish a strong safety net for gig workers, guaranteeing their security and welfare in India’s shifting employment landscape.
"Furthermore, the government remains devoted to providing social security benefits to workers across other unorganised sectors, ensuring dignity, security, and prosperity for every worker in the nation," he concluded.
The Union Minister also noted that the emergence of digital platforms has transformed employment, generating new possibilities for flexible work arrangements.
"India’s gig and platform economy has experienced rapid growth, with a report from NITI Aayog titled ‘India’s Booming Gig and Platform Economy’ estimating that the workforce in this sector will surpass 1 crore by 2024-25 and expand to 2.35 crore by 2029-30," he said.
