The Pension Fund Regulatory and Development Authority is encouraging gig and platform workers to use the National Pension System to build retirement savings. With flexible contributions starting as low as ₹99, the e-shramik model allows for varied payment structures, helping workers with irregular earnings plan for long-term financial security.
The Pension Fund Regulatory and Development Authority (PFRDA) is actively encouraging workers in the gig and platform economy to join the National Pension System (NPS) to build a formal retirement corpus. The regulator recently highlighted the flexibility of the NPS e-shramik (Platform Service Partner) model, which enables individuals in sectors like food delivery, ride-sharing, and quick commerce to begin their retirement savings with contributions as low as ₹99.
This model, which was originally introduced in October 2025, is designed to accommodate the irregular income patterns often seen in gig work. It provides a flexible contribution structure that allows payments to be made entirely by the worker, entirely by the platform aggregator, or through a joint contribution from both parties. While ₹99 is used as an illustrative entry point, there is no mandatory regulatory floor, allowing platforms and workers to determine their own contribution amounts based on their needs.
To join the system, platform workers can onboard through Points of Presence (PoP) affiliated with their aggregators. The process requires standard KYC documentation, including Aadhaar-based verification, a mobile number, and bank account details. Once the KYC process is complete, a Permanent Retirement Account Number (PRAN) is generated, which serves as the unique identifier for the pension account.
A key feature of this model for gig workers is account portability. Because the account is linked to the individual rather than the specific employer or platform, workers can maintain the same retirement account even if they switch between different service platforms. During the initial phases of this rollout, the regulator prohibited PoPs from charging onboarding fees, though normal charges for ongoing contributions apply according to standard PFRDA regulations.
For workers and the broader financial ecosystem, this move aims to bring informal workers into the formal social security net. However, there are inherent factors to consider. Unlike guaranteed-return schemes, NPS returns are market-linked, meaning the final corpus depends on the performance of the chosen investment funds. Furthermore, because gig work often involves fluctuating monthly earnings, maintaining consistent contribution habits remains a primary challenge for long-term wealth accumulation. The success of this model will depend on the continued participation of platform aggregators in facilitating the onboarding process and encouraging their partners to build a retirement corpus.