The Indian Express UPSC Key for July 18, 2026, covers EPFO reform
GS2Polity · Governance · IR· Poverty, hunger & nutrition· Prelims + Mains·
Why in news
The Government is developing 'EPFO Reform 3.0' to introduce a new contributory pension scheme for both organized and unorganized sector workers.
Background
The proposed scheme aims to accumulate contributions into a 'Target Retirement Sum' (TRS) invested in government-backed securities. It targets workers currently excluded from the Employees' Pension Scheme (EPS) and includes provisions for gig/platform workers via aggregators.
Facts for Prelims
- BodyEPFO: Employees' Provident Fund Organisation, the primary body for managing social security funds for workers in India.
- SchemeUnified Pension Scheme (UPS): A recently introduced pension framework distinct from the National Pension Scheme (NPS).
- FactReform 3.0 proposes a defined contribution framework allowing contributions from workers, employers, and CSR funds.
- FactWorkers may have the flexibility to decide the purpose of their retirement savings at the age of 55 years.
For Mains
Q. Discuss the significance of expanding social security coverage to the unorganized and gig economy workers through the proposed EPFO Reform 3.0.
Dimensions to cover in your answer
- Inclusion gap: Addressing the lack of formal social security for gig and platform workers who lack traditional employer-led benefits.
Keywords: Social Security · Gig Economy · Defined Contribution · Unorganized Sector · Pension Reform
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