The Indian government's push to extend social security coverage to the unorganised sector, gig workers, and the self-employed is a significant step forward. This initiative, led by the Employees' Provident Fund Organisation (EPFO), aims to provide a universal provident fund scheme, offering both accumulation and withdrawal phases. The accumulation phase mirrors the existing EPFO model, allowing contributors to contribute daily or annually, with tax benefits up to 2.5 lakh. The withdrawal phase, inspired by Singapore's model, allows subscribers to retain their corpus even after retirement, a valuable feature for freelancers and gig workers. This move is crucial as it expands retirement savings beyond the current EPFO net, which covers only those in establishments with over 20 workers. The scheme's self-financing nature, without budgetary support, is a notable aspect, ensuring sustainability. However, the process is still in its initial phase, with the government examining various models and seeking to design an IT architecture to support the new labour codes. This development is a positive step towards ensuring that all workers, including those in the gig economy and the self-employed, have access to retirement planning and social security, marking a significant shift in India's social security landscape.
