Gig workers such as delivery partners, drivers and other platform workers often do not have the retirement benefits available to traditional salaried employees.
To address this gap, the Pension Fund Regulatory and Development Authority (PFRDA) introduced the NPS e-Shramik (Platform Service Partner) Model in October 2025.
The scheme allows gig and platform workers to start saving for retirement through the National Pension System (NPS).
Contributions can be made by the worker, the platform, or both together.
While ₹99 per month has been mentioned by PFRDA as an example, ₹99 is not a fixed minimum contribution.
The platform and worker can decide the contribution amount under the applicable framework.
This gives workers the flexibility to start small and increase their savings as their income grows.
How Does the NPS e-Shramik Model Work?
The contribution system is similar to the NPS Corporate Model.
A platform aggregator can contribute to a worker’s pension account, the worker can contribute on their own, or both can contribute together.
There is also no maximum contribution limit under the Corporate Model framework.
PFRDA allows platform aggregators and service partners to decide a minimum amount for each contribution.
For example, ₹99 per month can be fixed as a contribution amount, but this is only an example and not a mandatory figure.
A platform aggregator is an online platform that connects customers with people providing services through the platform.
A platform service partner is an individual, including a gig worker, who provides services through such a platform.
What Happens When a Gig Worker Exits NPS?
The withdrawal rules for NPS e-Shramik are based on the rules applicable to the NPS All Citizen Model.
Under the current exit framework, a non-government subscriber reaching the applicable normal exit point can generally withdraw up to 80% of the accumulated pension wealth as a lump sum.
At least 20% is generally required to be used to purchase an annuity, subject to applicable conditions.
There is an important exception for smaller pension savings.
If the accumulated pension wealth is within the prescribed ₹8 lakh threshold at normal exit, the subscriber can opt to withdraw the entire amount without mandatory annuity purchase.
For premature or voluntary exit before the normal exit point, generally at least 80% of the accumulated amount is used to purchase an annuity, while the remaining amount can be withdrawn as a lump sum.
NPS also allows partial withdrawals for certain specified purposes, subject to eligibility conditions.
In case of the subscriber’s death, the accumulated pension wealth can be paid to the nominee or legal heir, as applicable.
What Are the Charges Under NPS e-Shramik?
The scheme has different charges depending on the service involved.
Point of Presence (PoP) charges: PoPs cannot charge an onboarding fee to service partners through platform aggregators until they have access to the applicable incentive arrangement.
Subsequent contribution-related charges will follow the existing PFRDA framework.
CRA charges: These are applicable according to the NPS Lite/Atal Pension Yojana (APY) charges approved by PFRDA for the informal sector.
Pension Fund, NPS Trust and Custodian charges: These will be charged as approved by the relevant authority.
PFRDA Offers Incentive for New NPS Accounts
To encourage platforms and workers to adopt NPS e-Shramik, PFRDA has introduced an incentive for eligible Points of Presence.
PoPs can receive up to ₹100 for each new NPS account opened under the model, subject to the applicable conditions.
The account must remain active for at least one year and receive the initial contribution to qualify.
For this purpose, an active account means one in which the subscriber has contributed at least ₹1,000 during the financial year.
PoPs are also not allowed to charge subscribers an onboarding fee under this incentive framework.
The incentive framework applies to eligible platform service partners registered on or before March 31, 2026, and is subject to review.
Can Gig Workers Change Platforms?
Yes. The pension account is designed to be portable.
A gig worker may work with multiple platform aggregators.
However, an individual pension account can be opened through only one platform aggregator at a time.
Workers can transfer or port their pension account from one platform aggregator to another, subject to the applicable rules.
They can also switch from a pension fund’s Platform Service Provider Scheme to the Common Scheme, as permitted under the regulations.
This portability is important because gig workers often move between different platforms during their careers.
How Does Registration Work?
The onboarding process takes place in two phases.
Phase 1: PRAN Generation
During the initial registration, 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 details are collected.
KYC can be completed through Aadhaar-based e-KYC or another method approved by PFRDA.
With the worker’s consent, a Permanent Retirement Account Number (PRAN) can then be generated.
The platform aggregator can select the investment scheme and pension fund during onboarding.
Workers can change the scheme later, subject to the applicable rules.
Phase 2: Additional Details
After the initial onboarding, the worker needs to provide additional information.
This includes details such as the father’s or mother’s name, email address and nominee information.
The PoP is required to obtain and record the nominee details within 60 days of onboarding.
Why Is NPS e-Shramik Important for Gig Workers?
The biggest advantage of NPS e-Shramik is that it allows workers with irregular incomes to start building a retirement fund.
Unlike traditional employees, gig workers may not receive employer-linked retirement benefits.
This model provides a structured way for them to save for the future while continuing to work with digital platforms.
There are three major advantages.
Flexible contributions: Workers do not have to depend on a fixed monthly salary to save for retirement.
Platform participation: The platform can contribute to the worker’s pension account, either fully or jointly with the worker.
Long-term growth: Regular contributions made over many years can potentially build a sizeable retirement corpus through long-term investment and compounding.
A New Approach to Retirement Planning
NPS e-Shramik represents a shift in how retirement savings can work for India’s growing gig economy.
For workers whose income and employment can change frequently, having a portable and flexible pension account can be particularly useful.
Instead of relying entirely on traditional employer-based retirement benefits, gig workers can now have a structured way to save for their post-retirement years.
The key point is that workers do not necessarily need to start with a large contribution.
Even small contributions made consistently over a long period can potentially grow into a meaningful retirement corpus.
As India’s platform economy continues to expand, initiatives such as NPS e-Shramik could make retirement planning more accessible to workers who do not follow a traditional employment pattern.
