Introduction: Why this benefit matters
India’s economy depends heavily on workers in the unorganised sector — construction labourers, daily-wage earners, helpers, drivers, vendors, domestic workers, and many others who keep industries and cities running. Yet, for decades, these workers have had little to no social security. Unlike salaried employees, they often lack steady income, pensions, or access to proper medical care.
To address this gap, the government has created welfare programmes specifically for labour card holders. When combined, these benefits can amount to nearly ₹6.5 lakh in value over a lifetime. This includes insurance cover, healthcare assistance, education support, pensions, and various financial aids.
This article explains the scheme in detail — who is eligible, what benefits are included, how to apply, and how it can impact workers’ lives.
Understanding the labour card
A labour card is an official document issued by state labour welfare boards or the Building and Other Construction Workers’ (BOCW) Welfare Board. It identifies a worker as part of the unorganised sector and grants them access to government schemes designed for their welfare.
Key purposes of the labour card:
- Acts as proof of employment in the unorganised sector.
- Provides eligibility for insurance, health care, pension, and education support.
- Helps the government track and support the welfare of millions of workers.
- Assures that workers and their families are not left without help during emergencies.
Breaking down the ₹6.5 lakh benefit
The headline figure of ₹6.5 lakh comes from combining central and state government schemes available to labour card holders. While the amount is not handed out at once, it reflects the cumulative value of support a worker and their family can receive.
1. Life Insurance (Pradhan Mantri Jeevan Jyoti Bima Yojana – PMJJBY)
- Coverage: ₹2 lakh in case of death (natural or accidental).
- Age: Available to workers aged 18–50 years.
- Premium: Only about ₹330 per year, often subsidised.
2. Accidental Insurance (Pradhan Mantri Suraksha Bima Yojana – PMSBY)
- Coverage: ₹2 lakh for accidental death or permanent disability.
- ₹1 lakh for partial disability.
- Premium: As low as ₹12 per year.
3. Health Insurance (Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana, PMJAY)
- Coverage: ₹5 lakh per family per year for hospitalisation and medical treatments.
- Includes major surgeries, chronic illness care, and maternity care.
- Accepted at empanelled government and private hospitals.
4. State Welfare Benefits (through Labour Welfare Boards/BOCW)
These vary across states but generally include:
- Education scholarships for children (ranging from ₹1,000 to ₹25,000+ depending on level).
- Maternity benefits (₹10,000–₹20,000 per child in some states).
- Marriage assistance (₹25,000–₹50,000 for daughters’ marriage).
- Pensions for workers after retirement.
- Funeral assistance in case of a worker’s death.
How the ₹6.5 lakh value is calculated
Let’s break it down with a simple table:
| Scheme/Benefit | Coverage (Approx.) |
| PMJJBY – Life Insurance | ₹2,00,000 |
| PMSBY – Accidental Insurance | ₹2,00,000 |
| Ayushman Bharat (PMJAY) – Health Insurance | ₹5,00,000 (per year, per family) |
| State Board Benefits (scholarships, pensions, etc.) | ₹50,000–₹1,50,000 (varies) |
So even if we count conservatively, a registered worker’s family can expect lifetime coverage and assistance worth ₹6.5 lakh or more.
Eligibility criteria
Every state has its own labour welfare board rules, but the common eligibility conditions are:
- Age: 18–60 years (sometimes capped at 55 for registration).
- Occupation: Must be engaged in unorganised sector work (construction worker, driver, helper, daily wage earner, etc.).
- Work record: At least 90 days of work in the previous 12 months.
- Documents required:
- Aadhaar card
- Residence proof
- Bank account details
- Passport-size photographs
- Proof of occupation (self-declaration, wage slip, or employer certificate)
Application process for labour card
Getting a labour card is the first step to accessing these benefits.
Steps to apply:
- Visit the nearest Labour Department/BOCW office or check if your state offers online application.
- Fill out the registration form with personal, occupational, and bank details.
- Attach required documents (Aadhaar, proof of residence, photos, etc.).
- Submit the application along with a nominal registration fee (usually ₹25–₹100).
- Wait for verification by labour officials.
- Once approved, your labour card is issued, usually within 15–30 days.
Renewal of labour card
The card is not permanent. It generally requires renewal every 1–3 years. Renewal involves:
- Updating any changes in personal details.
- Submitting proof of continued work in the unorganised sector.
- Paying a small renewal fee.
Failure to renew may result in loss of eligibility for schemes, so workers are advised to stay updated.
Real-life impact: Stories of workers
To understand how these benefits help, let’s look at hypothetical yet realistic examples.
Case 1: Health coverage saving a family
Ramesh, a construction worker in Uttar Pradesh, had his wife undergo surgery costing ₹1.8 lakh. Without Ayushman Bharat, he would have borrowed money at high interest. But since he was registered, the treatment was cashless.
Case 2: Insurance support after tragedy
Lakshmi, a daily-wage worker in Karnataka, lost her husband in an accident. Because he had PMSBY insurance via his labour card, she received ₹2 lakh compensation, which helped her support her children.
Case 3: Education support for children
Shankar, a registered labourer in Maharashtra, used the scholarship scheme to fund his daughter’s college education. Instead of dropping out, she is now pursuing a nursing course.
These stories reflect why awareness and access to benefits are so important.
Common challenges workers face
Despite such benefits, many workers miss out.
1. Lack of awareness
Many are not aware of the schemes available or assume the process is too complicated.
2. Documentation issues
Some workers do not have birth certificates, address proof, or employment certificates.
3. Middlemen exploitation
In rural areas, agents sometimes demand money to “help” workers apply, even though the process should be free or very low-cost.
4. Delay in approvals
Verification and issuance of cards may take months, discouraging workers from applying.
5. Renewal negligence
Many workers forget or avoid renewing their card, leading to cancellation of benefits.
Government initiatives to improve access
To overcome these hurdles, governments are taking steps like:
- Launching online portals for easy registration.
- Organising awareness drives in villages and cities.
- Providing document support camps to help workers without proper paperwork.
- Allowing self-declaration of work in some states instead of requiring employer proof.
Frequently Asked Questions (FAQ)
1. Is the ₹6.5 lakh benefit given as cash?
No. It is not a lump sum. It is the total value of insurance, healthcare, and welfare benefits a worker and family can use.
2. Do all workers get the same benefits?
The central schemes (insurance, health) are common, but state-specific schemes may differ. For example, scholarship amounts in Kerala may differ from those in Rajasthan.
3. What happens if a worker changes state?
Generally, benefits are tied to the state where the card is issued. Workers may need to re-register if they move permanently.
4. Can women workers apply?
Yes, both men and women in the unorganised sector can apply and are equally eligible.
5. Do workers need to pay for these schemes?
Registration fees are minimal (₹25–₹100), and insurance premiums are often subsidised. The value of benefits is far greater than the cost.
Why every worker should register
For a daily wage earner earning ₹300–₹500 per day, a single accident, illness, or death can destroy a family’s finances. With benefits like ₹2 lakh insurance, ₹5 lakh health cover, and scholarships for children, the labour card becomes a lifeline.
It is not just a document — it is a safety net against poverty, debt, and financial insecurity. Every eligible worker should prioritise getting registered.
| Scheme | Apply Link |
| PMJJBY | https://financialservices.gov.in/pmjjby |
| PMSBY | https://jansuraksha.gov.in |
| PMJAY (Ayushman Bharat) | https://pmjay.gov.in |
Conclusion
The ₹6.5 lakh benefit for labour card holders in 2025 is one of the most significant social security steps for India’s unorganised sector. It combines central schemes like PMJJBY, PMSBY, and Ayushman Bharat with state-level benefits in education, pensions, maternity, and more.
But the challenge lies in awareness and implementation. Millions of workers still don’t know about these benefits or fail to complete their applications due to red tape. The more workers who register, the stronger the safety net for India’s workforce will be.
If you are a labourer or know someone who is, encourage them to apply for a labour card today. The future security of their family may depend on it.
