EPFO 3.0 Reforms: Universal Pension and Social Security for Gig Workers
The article outlines the proposed EPFO 3.0 reforms aimed at providing universal pension coverage and social security, particularly for unorganised and gig workers. Key proposals include a defined contribution framework with multiple funding sources (workers, employers, government, aggregators, CSR), and options for annuity or systematic withdrawal at retirement. The reforms also envision a CBS-enabled tech platform to manage contributions, track progress towards a "Target Retirement Sum," and offer inflation-adjusted projections. Crucially, it proposes a "one-to-many mapping" for gig workers, allowing a single Universal Account Number (UAN) to aggregate contributions from multiple employers/aggregators, and introduces family/survivor pensions, aligning with the Code on Social Security to bring previously uncovered workers into the social security net.
Key Points
- EPFO 3.0 aims for universal pension coverage, including for unorganised and gig workers.
- It proposes a defined contribution framework with diverse funding sources, including aggregators and CSR funds.
- Members will have options for annuity or systematic withdrawal at retirement, with inflation-adjusted projections.
- A CBS-enabled tech platform will manage contributions and track progress towards a "Target Retirement Sum."
- The reforms include "one-to-many mapping" for gig workers and provisions for family/survivor pensions, aligning with the Code on Social Security.
Exam Facts
- EPFO 3.0 reforms are designed to cover over 60 crore workers, including an estimated 2.5 crore gig workers and building/construction workers in the next five years.
- The Code on Social Security mandates aggregator contributions of 1-2% of annual turnover for social security, not exceeding 5% of the amount payable by the aggregator.
- The reforms propose a "Target Retirement Sum (TRS)" and a "one-to-many mapping" for UAN.
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