Gig Workers Can Save Pension With ₹99

The Pension Fund Regulatory and Development Authority (PFRDA) has announced that platform workers associated with companies such as Zomato, Swiggy, Blinkit, Ola, Uber, and Urban Company can now use the National Pension System (NPS) to build a retirement corpus.

The NPS framework allows workers to start contributing with as little as ₹99 and continue investing at their own pace, with no regulatory minimum or maximum contribution limit. This flexibility is designed to help gig and platform workers save for their retirement.

The NPS e-shramik (Platform Service Partner) Model was introduced by PFRDA to bring gig and platform workers under the NPS framework. This model covers individuals who provide services to users through digital platforms under a service contract.

Under the framework, the contribution can be made by the platform and the worker jointly, by the worker alone, or entirely by the platform or aggregator on behalf of the worker. While PFRDA has not prescribed any minimum or maximum contribution limit, the worker and platform can mutually agree on a minimum amount for each contribution.

The model is broadly aligned with the NPS Corporate Model but has been structured specifically for platform workers. Importantly, platform aggregators are not required to register separately with PFRDA. Instead, Points of Presence (PoPs) can enter into arrangements with aggregators to enrol their workers.

The onboarding process is carried out in two stages. In the first stage, the worker's KYC details are collected. KYC can be completed through Aadhaar-based e-KYC or any other method permitted by PFRDA.

After the worker provides consent, a Permanent Retirement Account Number (PRAN) is generated. At the initial stage, the platform can select the investment scheme and pension fund for the worker. However, the worker has the option to change these choices after the account has been opened.

This move is expected to benefit millions of gig and platform workers in India, providing them with a secure and flexible way to save for their retirement.

The NPS framework has been designed to be flexible and accessible, allowing workers to contribute at their own pace and make changes to their investment choices as needed.

With the introduction of the NPS e-shramik model, platform workers can now take control of their retirement savings and build a secure financial future.

In conclusion, the National Pension System (NPS) is now available for platform workers, providing them with a flexible and secure way to save for their retirement. With contributions starting from as little as ₹99, this move is expected to benefit millions of gig and platform workers in India.