Labour ministry plans EPFO pension scheme for platform-based gig workers

The labour ministry is working on a pension scheme under the Employee Provident Fund Organisation (EPFO) for platform-based gig workers. If the scheme is launched, all platform aggregators such as Swiggy, Zomato, Uber, and Blinkit among others will have to contribute towards the pension of the gig workers whom they employ, official sources said.

 

“The ministry is working on a transaction-based percentage formula to determine pension contributions. Under this, on every transaction performed, the platform aggregator will collect a certain amount and deposit it with the EPFO into the account of the worker. We are hopeful the scheme will be unveiled in the next two-three months,” said a source.

 

Currently, discussions are underway with state labour ministers, gig workers' unions and aggregators, the source added.

 

In the scheme, gig workers will be allotted a single universal account number (UAN) under EPFO for all platforms, should they choose to work with multiple platforms.

 

For example, under the new scheme, if a worker who works with Zomato and Rapido earns Rs 10,000 and Rs 12,000, respectively, they will be getting a pension fund contribution from each aggregator. This contribution will likely be a low-single digit percentage of the total amount of the transaction.

 

“Workers will have to first register themselves on the E-Shram portal and declare the number of platforms they work with. Following verification, they will be allotted a UAN under EPFO,” said another source.

 

Shaik Salauddin, national general secretary, Indian Federation of App-Based Transport Workers (IFAT), said that for the new pension scheme to be fully effective, aggregator companies must share data on gig and platform workers with the government, rather than asking workers to register.

 

“Without mandatory data-sharing with the E-Shram portal, many workers will be unable to access these benefits. It is important to strengthen the integration of e-Shram registration for gig and platform workers with existing welfare schemes. Registration alone will not suffice to ensure that gig workers can access the full benefits of these initiatives,” he added.

 

The new pension scheme move comes in the wake of Finance Minister Nirmala Sitharaman announcing health coverage for gig workers under the PM Jan Arogya Yojana in her Budget speech.

 

Last week, the Economic Survey said India's gig workforce is set to reach 23.5 million by 2030. 

UNDER THE SECURITY NET

 

Ministry working on transaction-based percentage formula to determine pension contributions

 

On every transaction, the platform aggregator will collect a certain amount and deposit it with EPFO

 

Scheme may be unveiled in next two-three months