Ministry of Labour and Employment is set to introduce a policy granting pension benefits to gig and platform workers through the Employees’ Provident Fund Organisation (EPFO).
This initiative aims to provide financial security for gig workers, recognizing their significant contribution to the services economy.
Gig workers, including those working for platforms like Ola, Uber, Swiggy, and Zomato, have long been a crucial part of the new-age services economy.
However, they have often lacked the social security benefits enjoyed by traditional employees.
The new policy seeks to address this gap by providing a retirement kitty for gig workers.
EPFO Policy Details: Health Cover and Additional Benefits
The pension component of the social security scheme will be transaction-based and fully funded by the aggregators.
This means that a percentage of the income earned by gig workers on each transaction will be deducted and contributed to their pension fund.
The exact percentage contribution is yet to be finalized, but it is expected to be around 1-2% of the annual turnover of the aggregators.
Gig workers will also receive health cover under the PM Jan Aarogya Yojana. This was announced in the Budget 2025-26 by Finance Minister Nirmala Sitharaman.
This comprehensive approach aims to provide gig workers with both financial stability and healthcare security.
Implementation and Approval
The Ministry of Labour and Employment is currently working on the mechanism to deduct social security contributions.
They are also in discussions with state governments and gig workers’ unions.
The policy will soon be sent for cabinet approval. Once approved, it will be integrated with the e-Shram portal, which already registers unorganized sector workers.
The introduction of this policy is expected to benefit nearly 10 million gig workers in India.
According to NITI Aayog, the gig workforce in India is projected to reach 23.5 million by 2029-30.
This policy will not only provide financial security for gig workers but also recognize their contribution to the economy.
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