NPS: Workers in the unorganized sector and gig workers engaged in app-based platforms will also receive pension protection under the NPS. To this end, the government has launched the “NPS e-Shramik Scheme.” Workers already registered on the e-Shram portal can apply directly to this scheme.

According to the pension regulatory body, PFRDA, the scheme aims to provide pension coverage to workers who are not permanent employees of a company but work through platform services for employment. Until now, there was no established pension system for such gig workers.

Now, they too will receive the benefit of a regular pension through the NPS e-Shramik model. The central government aims to cover more than 100 million gig and unorganized workers under this scheme within the next year. All gig workers—delivery boys, drivers, tutors, or freelancers working on app-based platforms—can apply for this pension scheme. Significantly, registration is completely free, and the annual fee is only Rs 15. People between the ages of 18 and 60 can join this scheme.

It should be noted that workers enrolled in this scheme will receive a regular monthly pension after the age of 60. In the event of an unforeseen circumstance, the benefit will be distributed to a nominee. They will have 60 days to provide their nominee’s details.

What is NPS?

The National Pension Scheme (NPS) is a retirement scheme administered by the central government. It provides a monthly pension after the age of 60 based on a fixed monthly contribution. Launched in January 2004 for government employees, the scheme was expanded to the private sector and private citizens in 2009. It now also covers gig workers. It is administered by the Public Distribution System (PFRDA).

How to apply?

  1.  Visit the website (www.eshram.gov.in). Login using your mobile number and Aadhaar card.
  2.  Click on the NPS for Unorganized Workers section. To generate a PRAN number, you’ll need to enter your name, address, PAN number, and bank account details.
  3.  After that you will have to fill the amount to be deposited in the month.
  4. Now after submitting, the process of generating your PRAN number will start.

Be connected to the e-Shram portal

This facility is open to workers and laborers who are already registered on the e-Shram portal. They can apply directly on the portal. However, workers who have not yet registered will first need to obtain an e-Shram card.

Contributions to the plan can be made in three ways. First, a joint contribution, in which both the company and the employee contribute together. Second, the employee contributes only. Third, the company contributes only. It should be noted that workers enrolled in this scheme will receive a regular monthly pension after the age of 60. In the event of an unforeseen circumstance, the benefit will be distributed to a nominee. They will have 60 days to provide their nominee’s details.

Who are gig workers?

Gig workers are employees who work for online apps or e-commerce companies as cab drivers, delivery boys, or perform similar jobs. These are entirely temporary. Currently, their number exceeds 10 million, and is expected to grow to around 23.5 million by 2029-30.