Govt has created a Pension Scheme for Gig Workers

The Labour Ministry is set to seek the Union Cabinet’s approval for a pension scheme that will benefit one crore gig workers engaged with online platforms. Under this plan, a portion of their income from each transaction will be contributed toward social security, an official source confirmed.

Importance of the Scheme

This initiative follows the Budget announcement made earlier this month by Finance Minister Nirmala Sitharaman. She emphasized the government’s commitment to providing social security for gig workers through a structured pension plan.

In her Budget speech, Sitharaman also stated that these workers would receive identity cards and be registered on the e-Shram portal. Additionally, they would be eligible for healthcare benefits under the Pradhan Mantri Jan Arogya Yojana (PMJAY).

The scheme is expected to provide much-needed financial security and long-term stability to gig workers, helping them access various government welfare programs.

How the Pension Scheme Will Work

The Labour Ministry is currently developing a system where social security contributions will be deducted as a fixed percentage of earnings from every transaction made by gig workers on platforms like Ola, Uber, Swiggy, and Zomato. This deduction process would function similarly to the collection of Goods and Services Tax (GST).

Once implemented, gig workers will have two options upon retirement regarding their pension:

1. Withdraw interest on their accumulated pension funds as a regular pension.
2. Receive the total accumulated amount in equal installments over a specific period.

However, officials clarified that the exact percentage of income to be contributed toward the scheme has not been finalized.

Registration and e-Shram Portal Integration

Gig workers often work for multiple platforms simultaneously, making their registration crucial. The e-Shram portal, launched in August 2021, serves as a database for workers in the unorganized sector. It provides them with a Universal Account Number (UAN) for accessing various government benefits.

As of January 27, 2025, more than 30.58 crore unorganized workers have registered on the e-Shram portal. Currently, 12 government schemes have been integrated with this platform, ensuring broader coverage for workers.

Who Are Gig Workers?

According to the Social Security Code 2020, a gig worker is someone who earns money outside a traditional employer-employee relationship. This includes people working for online platforms such as Uber, Ola, Swiggy, and Zomato.

With the gig economy growing rapidly in India, this pension scheme aims to provide financial security to workers who currently lack long-term social benefits. The government hopes that this initiative will improve the financial stability of millions of gig workers in the country.