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The Employees’ Provident Fund Organisation (EPFO) is exploring a new framework that could allow self-employed individuals, gig workers, freelancers and unorganised sector employees to voluntarily contribute to a provident fund scheme, expanding retirement savings coverage beyond traditional salaried workers.

Currently, EPFcoverage is largely limited to employees working in organised sector establishments with 20 or more workers.

A large section of India’s workforce, including independent professionals, delivery workers, cab drivers and small business owners, remains outside the formal retirement savings system.

Under the proposed framework, these workers could get access to a universal provident fund mechanism where they can build a retirement corpus through their own contributions.

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The scheme is expected to provide greater flexibility compared with the existing EPF structure.

While traditional EPF requires fixed monthly contributions from employers and employees, the proposed model may allow subscribers to contribute based on their income patterns.

Workers with irregular earnings, such as freelancers and gig workers, may be able to make contributions daily, monthly or even annually depending on their financial capacity.

This flexibility could make retirement savings more accessible for people without regular salaries.

The proposed scheme may also offer tax benefits similar to the existing EPF system.

Contributions of up to Rs 2.5 lakh annually could receive tax exemption, while interest earned on the accumulated amount may also remain tax-free under the proposed structure.

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Unlike government-supported pension schemes such as the Pradhan Mantri Shram Yogi Maandhan Yojana, the proposed EPFO initiative is expected to be entirely self-funded.

Subscribers would create their retirement savings through their own contributions without direct financial support from the government.

EPFO has already started preparing the groundwork by inviting bids to develop the technology infrastructure required for implementing the scheme.

The proposal also aligns with the new labour codes, under which online platforms such as food delivery companies and ride-hailing services have been asked to register their workers.

Officials are studying international models before finalising the framework. If approved, the initiative could significantly widen India’s social security network by bringing millions of workers from the informal economy into a structured retirement savings system.

The proposal is still at an early stage and requires further approvals before implementation. However, it could mark a major shift in how retirement benefits are extended to India’s growing gig economy and self-employed workforce.