Social Security Scheme for Gig and Platform Workers
The labour ministry is examining the implementation of a multi-manager model for a new social security scheme aimed at gig and platform workers. This approach is being considered to ensure the scheme can be effectively managed given its potential size.
Fund Management Strategy
- The Employees’ Provident Fund Organisation (EPFO) might manage the provident fund contributions and disbursements.
- Pension fund management might be outsourced to another entity.
- A senior official indicated that while EPFO is likely to manage a significant portion, other managers may also be involved.
Current Management by LIC
- The Life Insurance Corporation of India (LIC) currently manages the Pradhan Mantri Shram Yogi Maandhan scheme.
- This scheme targets unorganised sector workers aged 18-40 years, offering a minimum pension of ₹3,000 after turning 60. Contributions are shared equally between the subscriber and the government.
Funding and Infrastructure
- The labour ministry will establish a social security fund with contributions from multiple stakeholders, including the Centre, states, aggregators, gig workers, and corporate social responsibility funds.
- The EPFO has upgraded to the CITES 2.01 system to support a larger beneficiary base.
Projections and Growth
- A 2022 Niti Aayog report estimates the number of gig and platform workers will grow from 7.7 million in 2020-21 to 23.5 million by 2029-30.
