EPFO may extend PF benefits to self-employed, gig workers under universal scheme
The Employees' Provident Fund Organisation (EPFO) is exploring a voluntary provident fund scheme aimed at self-employed individuals, gig workers, and those in the unorganised sector. This initiative seeks to extend retirement savings coverage beyond the traditional organised workforce, potentially benefiting millions who currently lack formal retirement savings options. Although the proposal is still under discussion, it represents a significant shift towards inclusivity in social security. If implemented, the scheme would allow participants to contribute voluntarily, with options for contribution frequency ranging from daily to annually. The accumulated funds would earn interest, and subscribers may enjoy tax benefits similar to those provided under the existing EPF system. Notably, the proposal also considers a more flexible withdrawal mechanism, allowing retirees to access their savings gradually rather than in a lump sum. As the government aims to enhance social security for various worker categories, the EPFO is actively designing the necessary IT architecture for this scheme. While discussions are in early stages, international models, such as Singapore's retirement savings framework, are being reviewed to inform the proposal. This initiative could mark a transformative step in providing financial security for freelancers and gig workers.
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