Zomato introduces pension plan for delivery partners
What's the story
Zomato has partnered with HDFC Pension to offer a National Pension System (NPS) model for platform-based delivery partners. The scheme, dubbed the "NPS Platform Workers Model," was launched on October 1 by Finance Minister Nirmala Sitharaman in New Delhi at an event organised by the Pension Fund Regulatory and Development Authority (PFRDA). The move is aimed at improving long-term financial security for gig workers associated with Zomato.
Onboarding process
Over 30,000 delivery partners have already generated PRANs
The NPS model, enabled through Kfintech's digital infrastructure, allows for a seamless onboarding process. Delivery partners can sign up using their existing KYC or e-KYC details with their consent. Additional information can be provided later, making the process quick and efficient. Over 30,000 delivery partners have already generated their Permanent Retirement Account Numbers (PRANs).
Growth projection
Zomato aims to onboard over 1 lakh delivery partners
Zomato has set an ambitious target of enabling over 1 lakh delivery partners to open NPS accounts by the end of 2025. This comes as part of a broader effort to provide financial security for India's growing gig workforce, which is expected to hit 23.5 million by 2030, according to a NITI Aayog report. The initiative also aligns with new government plans that could see platforms contributing part of worker earnings toward pensions.
Scheme benefits
NPS model offers flexibility and portability
The NPS model offers delivery partners the option to make small, periodic contributions and build retirement savings. These can be withdrawn as a lump sum or pension upon retirement. The framework also enables portability, allowing workers to retain their accounts even when switching jobs or platforms. This flexibility is a major highlight of the new scheme.
Expert opinions
Initiative aimed at expanding access to retirement planning
Sriram Iyer, MD and CEO of HDFC Pension, said the initiative is aimed at expanding access to retirement planning for those who are usually left out of formal schemes. Aditya Mangla, CEO of Zomato, echoed Iyer's sentiments by saying that the collaboration supports long-term financial security for delivery partners on the platform.