Pension Scheme For Gig Workers: Labour Ministry Set To Seek Cabinet Nod For The Proposal Soon, Says Report

The Labour Ministry is preparing to seek approval from the Union Cabinet for a pension scheme specifically designed for one crore gig workers involved with online platforms.

As part of the initiative, a portion of these workers' income will be deducted from each transaction to contribute to their social security, as reported by PTI.

This move follows Finance Minister Nirmala Sitharaman’s announcement in the recent Union Budget regarding the rollout of a social security scheme for gig workers.

The minister had shared that the scheme would include providing gig workers with identity cards and facilitating their registration on the e-Shram portal, which is aimed at supporting workers in the unorganised sector.

In her Budget speech, Sitharaman also mentioned that these workers would be covered under the PM Jan Arogya Yojana, which offers healthcare benefits to eligible citizens.

The initiative is expected to benefit nearly one crore gig workers and provide them with access to various government-run welfare schemes.

According to the sources cited in the PTI report, the Labour Ministry is currently developing a system that will allow online platforms, such as Uber and Ola, to deduct social security contributions from gig workers' earnings in a manner similar to the collection of GST on transactions.

However, the exact percentage of income to be allocated for social security contributions is still under discussion.

The e-Shram portal, launched in August 2021, has already registered over 30.58 crore unorganised workers. This portal aims to provide these workers with a Universal Account Number (UAN) and create a comprehensive database of unorganised workers in the country.

As of January 2025, 12 schemes from various government ministries have been integrated with e-Shram to offer additional benefits.

The scheme aligns with the provisions outlined in the Social Security Code 2020, which defines gig workers as individuals who participate in work arrangements and earn through activities outside the traditional employer-employee relationship.

This includes workers engaged with online platforms like Uber, Ola, Swiggy, and Zomato.

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