Government may order 2% pension contribution from e-commerce platforms towards gig workers: Report

In a move to bolster the welfare of gig workers, the government is set to introduce a pension scheme requiring platform aggregators to contribute 2% of each worker's income. This contribution will be deposited into the Employee Provident Fund Organisation (EPFO) account of each gig worker, ensuring additional financial security. 

The scheme is expected to be unveiled within the next two to three weeks, as per sources familiar with the matter. Notable platform aggregators such as Swiggy, Zomato, Uber, and Blinkit are anticipated to participate in this initiative. 

"This amount will not be inclusive of their incomes. It will be over and above that. A platform aggregator will collect the amount and deposit it with the Employee Provident Fund Organisation (EPFO) into the account of the worker. We hope the scheme will be unveiled in the next two-three weeks," a source told Business Standard. 

The announcement follows Union Finance Minister Nirmala Sitharaman's budget declaration in February, which included health coverage for gig workers under the PM Jan Arogya Yojana. The new pension scheme will require gig workers to register on the E-Shram portal, where they will declare the platforms they work with. Upon verification, workers will be assigned a universal account number under the EPFO. "Under this pension scheme, if a worker who works with a quick commerce platform earns ~15 on every transaction performed, its employer will be depositing 2 per cent of this amount (30 paise) under the single UAN with the EPFO," the source said. 

Currently, there are an estimated 10 million gig workers in 2025, with approximately 3.5 million engaged with online platforms. Eleven aggregators have confirmed that 3.5 million gig workers have been active with them over the past 90 days. "Eleven aggregators have reported 3.5 million gig workers who have worked with them for the past 90 days."

Shaik Salauddin, national general secretary of the Indian Federation of App-Based Transport Workers, has emphasised the critical need for platform aggregators to share data on gig workers with the government. "Without mandatory data sharing with the E-Shram portal, many workers will be unable to access these benefits. Registration alone will not suffice to ensure that gig workers can access gains from these initiatives," he added. 

Stakeholder discussions are ongoing, involving state labour ministers, gig workers' unions, and aggregators. The success of this pension scheme hinges on effective data sharing and cooperation among all parties involved. By aligning efforts, the government aims to provide comprehensive support to gig workers, securing their future through both health and pension benefits.