EPFO planning universal provident fund for freelancers and gig workers
Big news if you're freelancing or working gigs: EPFO is gearing up to launch a universal provident fund scheme just for you.
Until now, only companies with 20 or more employees got EPF benefits, leaving most gig workers and self-employed folks out.
This new move aims to give freelancers, delivery riders, cab drivers, and shop owners a way to save for retirement with more security.
Contributions flexible and 2.5L potentially tax-exempt
You'll be able to contribute whenever it suits you (daily, monthly, or yearly) with annual contributions of up to ₹2.5 lakh potentially tax-exempt.
The best part? Contributions could enjoy full tax exemption, and the interest earned is also expected to remain tax-free, just like regular EPF accounts.
It's fully self-funded (no government subsidies) and EPFO is already building the tech needed to roll this out once approved.
If greenlit, the proposal fits with the implementation of India's new labor codes, potentially giving gig workers access to a formal retirement savings platform.