EPFO Plans Universal PF Scheme for Gig Workers and Self-Employed People

The Employees’ Provident Fund Organisation (EPFO) is working on a framework to expand provident fund coverage beyond the organised workforce.

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The proposed universal PF scheme aims to bring gig workers, self-employed individuals, workers in the unorganised sector, and employees of exempted establishments under a voluntary retirement savings system.

If implemented, the initiative could significantly strengthen India’s social security framework by extending retirement benefits to millions of workers who currently remain outside the EPF system.

A Major Step Towards Universal Social Security

At present, EPFO primarily covers salaried employees in the organised sector. Under the proposed framework, workers without a traditional employer-employee relationship would also be able to build retirement savings through a government-backed provident fund platform.

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Unlike the existing EPF system, where both employees and employers contribute, the new model is expected to allow voluntary contributions by subscribers.

Officials are also exploring flexible contribution options that could enable workers to contribute daily, monthly, quarterly or annually, depending on their income patterns. Tax incentives are also being considered to encourage long-term retirement savings.

India has a rapidly growing gig economy and a large unorganised workforce. Freelancers, platform workers, delivery partners, small business owners and self-employed professionals often lack access to formal retirement benefits.

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A universal PF scheme would provide these workers with an opportunity to build a retirement corpus while expanding the country’s social security coverage.

According to EPFO, the organisation currently has more than 8 crore active members and manages a provident fund corpus of over ₹15 lakh crore, making it one of India’s largest social security institutions.

Expanding its coverage to informal workers could mark one of the biggest reforms in India’s retirement savings ecosystem.

Aligned with the Code on Social Security, 2020

The proposed universal PF scheme is aligned with the broader vision of the Code on Social Security, 2020, which aims to extend social security benefits beyond the organised workforce.

The Code recognises unorganised workers, gig workers and platform workers, and enables the Central Government to frame welfare schemes covering old-age protection, life and disability insurance, health and maternity benefits, and other social security measures.

While the Code provides the legal framework, the proposed universal PF scheme could become one of its most significant implementations by offering a structured retirement savings mechanism to workers who have traditionally remained outside the EPFO network.

The initiative would also support the government’s broader objective of formalising India’s growing gig economy and improving long-term financial security for millions of workers.

Framework Still Under Discussion

The proposal is currently at the policy stage, and no official launch timeline has been announced. According to reports, EPFO is studying international social security models before finalising the framework and evaluating various implementation options.

Although EPFO has not issued any official statement on the proposal, the reported move reflects the government’s continued efforts to expand social security coverage in line with the Code on Social Security, 2020.

If approved, the universal PF scheme could become a landmark reform, giving millions of gig workers, self-employed professionals and unorganised sector workers access to a trusted, government-backed retirement savings platform for the first time.

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