Economy · 18 Jul 2026

Target Retirement Sum EPFO

Which one of the following correctly describes the statutory contribution obligation placed on gig aggregators under the Code on Social Security, 2020, in the context of the proposed Target Retirement Sum scheme?

AAggregators must contribute 5-10% of a gig worker's monthly income directly into the worker's Universal Account Number
BAggregators must contribute 1-2% of their annual turnover toward worker welfare, capped at 5% of amounts payable to the worker
CAggregators are exempted from any statutory contribution, with the entire corpus funded by government co-contribution and CSR funds alone
DAggregators must match the worker's own contribution rupee-for-rupee, similar to the employer contribution structure under the EPS

Tests precise recall and application of a specific statutory contribution formula, distinguishing it from several plausible but incorrect variations of similar-sounding contribution structures.

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This question is based on: EPFO's New "Target Retirement Sum" - Can a Pension Plan Handle an Irregular Income?
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About this question

Why in news

EPFO is designing a Target Retirement Sum-based pension scheme to bring gig and platform workers into a contributory retirement framework, six years after the Code on Social Security, 2020 first promised such coverage.

Why for UPSC

This tests whether aspirants can distinguish the precise statutory formula for a lesser-known but codified obligation from plausible but incorrect variations - testing depth over headline familiarity.

Prelims summary

Under the Code on Social Security, 2020, gig aggregators must contribute 1-2% of annual turnover toward worker welfare, capped at 5% of worker payments - a distinct, turnover-based obligation feeding into schemes like the proposed Target Retirement Sum.

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