Platform Workers to Register on e-Shram Portal for Formal Recognition

Syllabus: GS3/ Economy

In News

• The Union Ministry of Labour and Employment has urged gig and platform workers to register on the e-Shram portal for formal recognition and access to benefits under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).

About

• India is witnessing a gig economy revolution due to its large workforce, rapid urbanization, smartphone penetration, and digital technology adoption.
• Recognizing the contribution of the gig and platform workers to the nation’s economy, the Union Budget 2025-26 has made the announcement for the provisions of
  • registration of online platform workers on e-Shram portal, 
  • issue of identity cards, and 
  • healthcare coverage under Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
• AB-PMJAY provides a cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization across over 31,000 public and private empanelled hospitals in India.

What is Gig and Platform economy?

• Definition: The Gig Economy refers to a labor market characterized by short-term, flexible jobs where workers are hired on a contractual or freelance basis rather than traditional full-time employment. These workers, called gig workers, take up tasks (gigs) on-demand without long-term commitments.
  • The Platform Economy is a subset of the gig economy where digital platforms (websites, apps like Zomato, Ola etc) connect workers with customers or employers.
• Projected Growth: NITI Aayog has projected that the gig economy in India will employ over 1 crore workers in 2024-25, subsequently reaching 2.35 Crores by 2029-30.
• Trend: Medium-skilled jobs are decreasing, while low and high-skilled jobs are increasing.

What major challenges Gig workers are facing?

• Lack of job security: no fixed salary or long-term contracts.
• Limited social security benefits:  Not covered under EPFO, ESIC, or other welfare schemes.
  • No health insurance, paid leave, or retirement benefits.
• Unregulated work conditions: Long hours, inconsistent pay, and potential exploitation.
• Dependence on platform algorithms: Earnings and visibility depend on platform policies.

Recommendations for Strengthening the Gig & Platform Economy

• Boosting Platform Economy: Launch “Platform India” initiative for funding, skilling, and financial inclusion.
  • Connect street vendors, small businesses to digital platforms.
• Financial Inclusion: Provide loans without collateral for gig workers.
  • Priority lending for first-time gig entrepreneurs.
• Skill Development: Government & platform collaboration for training.
  • Skill certification & career progression for gig workers.
• Social Security: Health insurance, accident coverage, paid sick leave.
  • Retirement plans, income support during low work periods.

Source: PIB