Archive · 19 Jul 2026
Government Plans Flexible Pension Scheme for All Workers
The government is planning a new pension scheme that will cover more workers, including those in gig jobs.
This scheme will let people save for retirement in a flexible way.
They can choose how much to save and how to use their savings when they retire.
The government is also looking at ways to make sure families are taken care of if something happens to the worker.
The scheme is still being discussed, and there's no date set for when it will start.
Government proposes a new contributory pension scheme under EPFO 3.0 reforms to cover workers in organized and unorganized sectors, including gig and platform workers.
The scheme follows a defined contribution approach with individual accounts invested in government-backed securities.
Key feature is the Target Retirement Sum (TRS), which dynamically calculates the required retirement corpus based on member's chosen pension goal.
Contributions can come from multiple sources, including employees, employers, government co-contributions, and third parties.
The scheme offers more flexibility after retirement, allowing members to decide how to use their accumulated corpus from age 55.
- Who
- Government of India, EPFO, workers in organized and unorganized sectors, gig and platform workers
- What
- Proposed flexible pension scheme under EPFO 3.0 reforms
- When
- Under consideration, no timeline announced
- Where
- India
- Why
- To expand retirement coverage and provide broader social security benefits, especially for gig and platform workers
Proponents
Critics
Coverage Expansion
Proponents
The scheme aims to cover workers in both organized and unorganized sectors, including gig and platform workers, providing broader social security.
Critics
Critics argue that the scheme may be difficult to implement for unorganized and gig workers due to their irregular income patterns.
Flexibility
Proponents
The proposed scheme offers more flexibility compared to existing pension systems, allowing members to choose their pension payouts and adjust withdrawals over time.
Critics
Critics worry that the flexibility might lead to mismanagement of funds, especially for those who are not financially literate.
- Scheme Type
- Defined contribution approach
- Target Retirement Sum (TRS)
- Dynamic calculation based on member's chosen pension goal and expected retirement age
- Contribution Sources
- Employees, employers, government co-contributions, aggregators, third parties (CSR funds, NGOs, donor organizations)
- Universal Account Number (UAN)
- Single UAN can be linked with multiple employers or digital platforms
- Flexibility After Retirement
- Members can decide how to use their accumulated retirement corpus from age 55
- Family Benefits
- Pooled 'Family Benefit Fund' for spouses, children, and orphans
- Implementation Status
- Under consideration, no timeline announced