Gig workers working with delivery, ride-hailing and other digital platforms can now start planning for their retirement with a small investment of just ₹99.
The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new pension scheme under the National Pension System (NPS) specifically for gig workers.
The scheme is designed to help people working through digital platforms build a retirement fund over time.
Start Investing With Just ₹99
Under the new scheme, gig workers can begin their pension contribution with only ₹99.
There is no fixed minimum or maximum contribution limit.
This means workers can contribute according to their financial situation and increase their investment whenever they want.
The scheme also does not impose a retirement age for making contributions. Workers can continue working and contributing for as long as they wish.
Who Can Join This Pension Scheme?
The scheme is available to people working through various digital platforms.
This includes food delivery workers associated with platforms such as Swiggy and Zomato, as well as quick-commerce workers working with Blinkit, Zepto and Instamart.
Ride-hailing drivers working through platforms such as Ola, Uber and Rapido can also benefit.
Workers providing services through platforms such as Urban Company, along with other eligible gig and service-platform workers, can also join the scheme.
How Can Gig Workers Open an NPS Account?
To take advantage of the scheme, workers need to open an NPS account under the Gig Workers Pension Scheme category.
For basic KYC, workers need to provide details such as their name, address, PAN, mobile number and bank account information. Aadhaar is used for authentication.
After the worker gives consent, a Permanent Retirement Account Number (PRAN) is issued immediately.
Parent and nominee details can then be added within 60 days of joining.
One important benefit is that the NPS account does not have to be closed when a worker changes companies.
The same account can be linked to a new platform or aggregator.
How Will the Pension Money Grow?
The contributions made under NPS are invested in market-linked investments as well as government securities.
Over the long term, these investments can help workers build a retirement corpus.
The final amount will depend on factors such as how much the worker contributes, investment performance and the length of time the money remains invested.
After reaching the applicable retirement stage, workers can receive a portion of the accumulated amount as a lump sum.
The remaining amount can be used to purchase an annuity, which can provide a regular monthly pension.
The monthly pension will depend on the amount accumulated and the annuity chosen.
For gig workers who may not have access to a traditional employer-sponsored retirement plan, starting with a small amount like ₹99 could provide a simple way to begin saving for the future.
