New Pension Scheme to Aid One Crore Gig Workers

The labour ministry is seeking approval for a pension scheme for one crore gig workers engaged with online platforms. The scheme will involve social security contributions from workers' income on each transaction. This initiative follows Finance Minister Nirmala Sitharaman's Budget announcement to extend social welfare benefits to gig workers.

The Ministry of Labour is poised to seek the Union Cabinet's nod for a groundbreaking pension scheme targeting one crore gig workers affiliated with online platforms. This initiative, which will see social security contributions deducted from each transaction these workers make, marks a significant step forward.

In a move reflecting her earlier Budget speech, Finance Minister Nirmala Sitharaman announced that gig workers will soon receive identity cards and registration on the e-Shram portal. Additionally, they will gain healthcare benefits under the PM Jan Arogya Yojana.

The labour ministry is working on a system, akin to the GST collection method, where online platforms like Ola and Uber will facilitate deductions for social security. The exact contribution percentage, however, remains undecided. This scheme will provide gig workers with a choice of pension withdrawal options upon retirement.