Gig workers and other platform workers can use the National Pension System (NPS) to start saving for retirement with small contributions.
The Pension Fund Regulatory and Development Authority (PFRDA) is highlighting its NPS e-shramik model, which was introduced in October 2025 to bring platform service partners under the pension system.
While Rs 99 a month has been mentioned as an example, it is not a fixed minimum contribution set by PFRDA. The rules allow the platform and worker to decide the contribution amount. The contribution can be made by the worker, the platform, or jointly by both.
This means that a gig worker who starts investing early and gradually increases contributions as income rises can now potentially build a substantial NPS corpus over the long term, even without the stability of a traditional salaried job or access to an employer-sponsored retirement plan.
Contribution and exit pattern
The NPS e-shramik (Platform Service Partner) Pension scheme’s contribution framework is similar to the NPS Corporate model; that is, contributions can be made jointly (Platform Aggregator + Platform Service Partners), solely by Platform Service Partners, or solely by Platform Aggregator.
According to the existing Corporate Model, there will be no maximum contribution thresholds.
“To ensure effective contributions, the Platform Aggregator/Platform Service Partners are free to fix a minimum contribution for each instance of credit into the individual pension account, for e.g., Rs 99 per month per contribution,” says PFRDA.
As per PFRDA, a platform aggregator refers to an online marketplace or digital platform that enables buyers or users to connect with platform service partners to access or avail services offered through the platform.
A platform service partner refers to an individual, including a gig worker, who provides services to users of a platform for consideration under a service contract with the Platform Aggregator.
However, exit and withdrawal of platform service partners shall be governed by the provisions applicable to the all citizen model, as specified under the PFRDA (Exit and Withdrawals) Regulations, 2015.
Under the latest NPS exit framework, for a non-government subscriber exiting at the applicable normal exit point, up to 80% of the accumulated pension wealth can be taken as lump sum, while at least minimum 20% is required to be used for purchasing an annuity, subject to the applicable conditions and thresholds. If the accumulated pension wealth is within the prescribed threshold of Rs 8 lakh at normal exit, the subscriber can opt for withdrawal of the entire amount without mandatory annuity purchase.
For premature/voluntary exit before the normal exit point, the general rule is that at least 80% of the accumulated pension wealth is used to purchase an annuity and the remaining amount can be withdrawn as lump sum. There are also provisions for partial withdrawals for specified purposes, subject to eligibility conditions. In the event of the subscriber’s death, the accumulated pension wealth can be paid to the nominee(s) or legal heir(s), as applicable.
NPS eShramik charges
PoP Charges: PoPs (Point of Presence) are not permitted to charge an onboarding fee Service Partners thru Platform Aggregators until they have access to an incentive setup. Subsequent contribution fees will be in accordance with existing charges or as at times adjusted by the PFRDA.
CRA Charges: Charges in accordance with NPS Lite/Atal Pension Yojana (APY) authorized by PFRDA for the informal sector.
Pension Fund, NPS Trust & Custodian Charges: as approved by the authority, according to PFRDA.
NPS incentive framework
To encourage the initial adoption of NPS among Platform Service Partners and support Points of Presence (PoPs) in developing the necessary systems, creating awareness and educating platform service partners, PFRDA will provide an incentive of up to Rs 100 for each new NPS account onboarded under this model as a promotional initiative. The applicable incentive framework is as follows:
| Type of Incentive | Eligibility Criteria | Conditions | Rate |
| Registration/ Activation Incentive | Enrolment of new individual Service Partners by the PoPs through “Platform Aggregators” | Account remains active* for a minimum period of 1 year; and initial contribution received | Upto Rs 100 per capita |
Source: PFRDA
Note: An Active Account shall mean an account in which the subscriber has made a contribution of at least Rs. 1,000 during the financial year. PoPs shall not levy any onboarding fee on subscribers under this framework.
The incentive framework for PoPs shall be applicable to Platform Service Partners registered on or before 31 March 2026 under the NPS e-Shramik (Platform Service Partner) Model. The framework shall be reviewed thereafter.
Pension account portability and shifting
Platform Service Partners may simultaneously engage with multiple Platform Aggregators. However, an individual pension account may be opened through only one Platform Aggregator at a time.
Platform Service Partners may transfer or port their individual pension account from one Platform Aggregator to another. They may also switch from the Platform Service Provider Scheme offered by the Pension Funds to the Common Scheme, in accordance with the applicable provisions.
Registration and onboarding process
A two-phase registration procedure will be used to enable early and seamless onboarding service.
Phase I – instant generation of Permanent Retirement Account Number (PRAN)
The Platform Aggregators/PoP will do the KYC verification of Service Partners throughout the onboarding process in order to acquire a minimum of details, including Name, Address, PAN, Mobile number, and Bank account details.
KYC shall be completed through Aadhaar-based e-KYC or any other mode specified by PFRDA from time to time, in accordance with the applicable provisions of the Prevention of Money Laundering Act (PMLA) and the relevant PFRDA guidelines.
Where KYC details are already available with the Platform Aggregator, such details may be utilised by the PoP, subject to applicable regulatory requirements. The PRAN may be generated with the consent of the Platform Service Partner for the purpose of onboarding.
The Platform Aggregator may choose the investment scheme and pension fund during onboarding, and the Service Partners will have the option to modify the scheme after onboarding.
Phase II – Completion of subscriber details
Additional details, including the father’s/mother’s name, email ID and nominee details, shall be furnished by the Platform Service Partner. The PoP shall subsequently obtain and record the nominee details within 60 days of onboarding.
How can gig and platform workers benefit from the model?
For gig workers, the biggest advantage is the opportunity to convert a flexible income stream into a long-term retirement asset.
Unlike salaried employees, many platform workers may not have access to employer-linked retirement benefits. NPS e-Shramik provides a mechanism through which the platform, the worker, or both can contribute towards the worker’s pension account.
The model can be particularly useful because of three factors:
● Flexibility of contribution: Workers can contribute without being tied to a conventional monthly salary structure.
● Platform participation: Aggregators can contribute on behalf of their service partners, creating an additional avenue for retirement savings.
● Long-term compounding: Contributions made over a long working life can accumulate into a meaningful retirement corpus.
For the gig economy, this is an important shift from viewing social security only through the lens of traditional employment. As India’s platform economy expands, retirement planning also needs to become portable, flexible and digitally accessible.
Key takeaway
Overall, NPS e-Shramik is an important step towards making retirement planning more inclusive. Its biggest differentiator is that it adapts the NPS architecture to the realities of platform work—where income can be variable, employment can be non-linear and workers can move between platforms—while giving them a formal and portable retirement savings account.
From a retirement-planning perspective, the key benefit is that even small, intermittent contributions can be channelled towards long-term retirement savings. This is particularly relevant for workers whose income may fluctuate from month to month.
The model also brings retirement planning closer to where gig workers already operate—their digital work platforms—rather than expecting every worker to independently navigate the traditional financial-services ecosystem.
“The model is significant because gig workers typically do not have the conventional employer-employee relationship through which retirement benefits are usually provided. NPS e-Shramik creates a structured route for them to start building a retirement corpus while continuing with the flexibility of platform-based work,” said Vishwajeet Goel, Head of Pensionbazaar.
One of the biggest strengths of the model is flexibility. Contributions can be made jointly by the platform aggregator and the service partner, entirely by the service partner, or entirely by the aggregator.
Goel says that, for the gig economy, this is an important shift from viewing social security only through the lens of traditional employment. As India’s platform economy expands, retirement planning also needs to become portable, flexible and digitally accessible.
Disclaimer: This article is for informational purposes only and should not be construed as investment, financial, tax, or legal advice. Any illustrations, examples, or return projections used in this article are for explanatory purposes only and do not guarantee actual investment outcomes. The views and opinions expressed by experts quoted in this article are their own and should not be considered investment recommendations. Readers should consult a qualified professional before making any financial decisions.
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