NPS e-shramik: These days, the work landscape is shifting quickly. In the past, most people stuck to one job or office, but now a lot of folks are opting to be freelancers or gig workers. They aren’t tied down to a single company; instead, they offer their skills for various projects and get paid for it. However, they miss out on benefits like pensions or provident funds. To tackle this, the government is rolling out a scheme for them. With the NPS e-shramik initiative, gig workers will gain access to benefits similar to PF and pensions.
What’s this new NPS e-shramik platform service partner all about?
Millions of gig workers, including those working with companies like Zomato, Swiggy, Blinkit, Ola, Uber, and Urban Company, will now be connected to the NPS pension scheme. This means that anyone employed by these companies can sign up for the NPS and start building a pension for the future. This new initiative is called the NPS e-shramik Platform Service Partner.
Just like employees in both government and private sectors enjoy perks like the National Pension System (NPS) or PF, gig workers have been left out of these long-term protections. To address this gap, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new program.
The number of gig workers in India is on the rise. A report from NITI Aayog states that while there were 7.7 million gig workers in 2020, this number could soar to 23.5 million by 2030. This shift is a good sign for the Indian economy, but it also brings a major challenge: ensuring social and retirement security for these workers.
How will the registration process take place?
Step 1 – Quick PRAN Generation
The KYC details of the worker, including their name, address, PAN, mobile number, and bank information, will be verified.
If platforms such as Swiggy or Ola already possess this information, it will be utilized.
Once the worker gives consent, they will receive a PRAN (Permanent Retirement Account Number).
The worker and the company can collaboratively select the pension fund and investment scheme.
Step 2 – Additional Information
The worker must provide their parents’ names, email ID, and nominee details.
It is essential to submit the nominee’s information within 60 days.
What is the required contribution?
Contributions can be made in three different ways.
Joint Contribution – both the platform and the worker contribute.
Worker-Only Contribution – only the workers make contributions.
Platform-Only Contribution – only the company makes contributions.
Both companies and workers can establish a minimum monthly contribution of Rs 99. However, the minimum for the regular NPS is Rs 500. Additionally, there will be no registration fee, and the annual fee has been lowered from Rs 100 to Rs 15.
Why is this plan important?
Experts indicate that if gig workers consistently contribute to the NPS, they will reap the benefits of compounding and secure their financial future after retirement. This initiative is a significant advancement for gig workers and freelancers, as it allows them to access pension benefits akin to those of permanent employees.