Government Expands Social Security for Gig Workers and EPFO Subscribers with Major Reforms

 

In a landmark move towards inclusive social security, the Indian government is actively working to extend pension, insurance, and financial benefits to gig workers while simultaneously modernizing services under the Employees' Provident Fund Organisation (EPFO) through digital upgrades and expanded partnerships.

Gig Workers to Get Pension and Health Insurance

The Ministry of Labour has finalized a proposal to provide pension benefits to gig workers, such as delivery partners and ride-hailing service providers, under the social security code. As per the plan, aggregator platforms like Uber, Ola, Zomato, Swiggy, and Blinkit will contribute 2% of each transaction bill towards the pension fund of gig workers. Most companies have expressed agreement with the proposal.

The pension scheme will be managed by EPFO and gig workers will be given options to receive benefits either as a lump sum or monthly pension. The proposal will soon be sent for Cabinet approval. This initiative is part of the broader aim to bring gig workers into the fold of formal social protection.

In addition to pension, gig workers will also receive health insurance benefits of up to ₹5 lakh. This is expected to benefit 2.35 crore workers by FY 2029–30 under the e-Shram portal system, which is already operational.

EPFO Enhances Digital Access and Minimum Pension Demand

To make access more efficient and inclusive, EPFO has introduced facial recognition-based verification allowing employees to generate their Universal Account Numbers (UAN) independently. This service is initially being rolled out in six districts of Bihar and will expand to 33 districts soon. It allows employees to link UAN with Aadhaar and mobile numbers, enabling easy access to all EPFO-related services.

Furthermore, the Central Government has been urged to increase the minimum pension under EPFO from the current ₹1,000 to ₹7,500 per month. This demand, championed by several parliamentary committees and employee unions, aims to provide financial stability to over 6 crore pensioners, especially those in the private sector.

Expansion of EPFO’s Banking Network

To streamline fund collection and widen service accessibility, EPFO has added 15 more banks to its panel, taking the total count of partner banks to 32. This expansion is aimed at simplifying employer contributions and benefit disbursal mechanisms.

New Features: UPI Withdrawals and Easy Claims

Soon, EPFO members will be able to withdraw funds using UPI (Unified Payments Interface). Additionally, claim processing for up to ₹1 lakh will become more seamless through the UMANG app, making the system more user-friendly and prompt.