Gig workers and platform workers may not have the same retirement benefits as traditional salaried employees.
But a new pension model could help them start saving for their future, even with small and irregular contributions.
The Pension Fund Regulatory and Development Authority (PFRDA) introduced the NPS e-Shramik model in October 2025 to bring platform workers into the formal pension system.
The model allows workers and platforms to contribute to a National Pension System (NPS) account. Contributions can be made by the worker, the platform, or both.
Importantly, ₹99 is only an example of a possible contribution and is not a fixed minimum amount set by PFRDA.
The worker and platform can decide the contribution amount according to the applicable arrangement.
How Does NPS e-Shramik Work?
Under the NPS e-Shramik model, gig workers can build retirement savings gradually instead of needing to make a large investment at once.
For example, a delivery worker, driver or other platform service partner can contribute small amounts while working.
As their income increases, they can potentially increase their contributions.
There is also no maximum contribution limit under the NPS Corporate Model framework applicable to this scheme.
Contributions can be made in three ways:
By the platform aggregator and the worker jointly
Entirely by the worker
Entirely by the platform aggregator
A platform aggregator is a digital platform that connects customers with people providing services through the platform.
What Happens When You Withdraw the Money?
The exit and withdrawal rules for NPS e-Shramik are based on the rules applicable to the NPS All Citizen Model.
At normal exit, a non-government NPS subscriber can generally withdraw up to 80% of the accumulated pension wealth as a lump sum, while at least 20% is used to purchase an annuity, subject to applicable conditions.
However, if the pension wealth is within the prescribed ₹8 lakh threshold at normal exit, the subscriber can choose to withdraw the entire amount without being required to purchase an annuity.
Different rules apply when a subscriber exits before the normal exit age.
In such cases, at least 80% of the accumulated amount is generally used to purchase an annuity, while the remaining amount can be withdrawn as a lump sum.
Partial withdrawals are also allowed for specified purposes, subject to eligibility conditions.
If the subscriber dies, the accumulated pension wealth can be paid to the nominee or legal heir, as applicable.
What Are the Charges?
NPS e-Shramik involves different charges depending on the service involved.
Point of Presence (PoP) entities cannot charge an onboarding fee to service partners through platform aggregators until they have access to the applicable incentive arrangement.
Charges on subsequent contributions will follow the existing PFRDA-approved structure.
Other charges, including those related to the Central Recordkeeping Agency (CRA), pension funds, NPS Trust and custodian, will be as approved under the applicable rules.
PFRDA Offers Incentive for New Accounts
To encourage more platform workers to join the scheme, PFRDA has introduced an incentive of up to ₹100 for each new NPS account opened under the e-Shramik model.
The incentive is available for eligible new service partner registrations through PoPs and platform aggregators.
For the incentive to apply, the account must remain active for at least one year and receive the initial contribution.
An account is considered active when the subscriber has contributed at least ₹1,000 during the financial year.
PoPs cannot charge subscribers an onboarding fee under this incentive framework.
Can Workers Change Platforms?
Yes. Portability is one of the important features of the NPS e-Shramik model.
A platform worker may work with multiple aggregators at the same time.
However, an individual pension account can be opened through only one platform aggregator at a time.
Workers can also transfer or port their pension account from one platform aggregator to another.
They may also switch from the pension fund’s Platform Service Provider Scheme to the Common Scheme, subject to applicable rules.
How Can Gig Workers Open an NPS Account?
The onboarding process is divided into two phases.
Phase 1: Generate PRAN
During the first phase, the platform aggregator or PoP completes the worker’s KYC process.
Basic details such as the worker’s name, address, PAN, mobile number and bank account information are collected.
KYC can be completed through Aadhaar-based e-KYC or another method permitted by PFRDA.
After obtaining the worker’s consent, a Permanent Retirement Account Number (PRAN) can be generated for onboarding.
The platform aggregator can also select the investment scheme and pension fund during onboarding.
The worker can change the scheme later, subject to applicable rules.
Phase 2: Complete Additional Details
In the second phase, the worker provides additional information such as their parents’ names, email address and nominee details.
The PoP is required to obtain and record the nominee information within 60 days of onboarding.
Why Is NPS e-Shramik Important for Gig Workers?
The biggest advantage of the scheme is that it brings retirement savings to workers who may not have a traditional employer-sponsored pension plan.
Gig workers often have variable incomes and may move between different platforms.
NPS e-Shramik gives them a formal pension account that can move with them.
The model offers three major advantages:
Flexible contributions: Workers can contribute according to their income and arrangement with the platform.
Platform participation: Companies can contribute towards the retirement savings of their service partners.
Long-term savings: Even relatively small contributions made over many years can potentially grow into a significant retirement corpus through long-term investment and compounding.
A New Approach to Retirement Planning
The NPS e-Shramik model represents a shift in how retirement benefits can be provided in India’s growing gig economy.
Instead of depending entirely on the traditional employer-employee relationship, platform workers can use a digital and portable system to build retirement savings.
For workers whose income changes from month to month, the ability to make flexible contributions can be particularly useful.
The model also brings pension planning closer to the digital platforms where gig workers already manage their work.
For many platform workers, starting early may be more important than starting with a large amount.
Regular contributions over a long period can give their retirement savings more time to grow.
Overall, NPS e-Shramik provides gig and platform workers with a structured way to prepare for retirement while continuing to enjoy the flexibility of platform-based work.
