Strengthening India's Social Security Framework: Industry Perspectives on EPFO & ESIC Reform
On 24 April 2026, Nasscom submitted a detailed representation to NITI Aayog outlining key EPFO and ESIC implementation challenges faced by the technology sector.
The submission is in response to the NITI Aayog's consultative approach and a roundtable held on 23rd March towards ideas on social sector reforms, modernising administrative processes, strengthening digital infrastructure, and aligning social security frameworks with evolving workforce realities. The key recommendations included
1. Modernising PF Transfers and Digital Workflows
While the Universal Account Number (UAN) system was designed to enable seamless portability, exempted establishments continue to face procedural bottlenecks in PF transfers due to the absence of automated workflows and recurring technical issues such as Annexure K access constraints .
The representation recommends extending auto-transfer parity to exempted establishments, restoring visibility of employer history under UAN, improving digital dashboards for Annexure K, and enhancing system stability to ensure continuity of benefits.
2. Strengthening EPFO Digital Infrastructure
Large IT-ITES employers process high-volume Electronic Challan-cum-Return (ECR) filings involving tens of thousands of records. Portal processing limitations and server constraints during peak cycles have resulted in compliance friction, despite timely intent to remit contributions .
The submission highlights the need for scalable infrastructure, outage acknowledgement mechanisms, and structured relief where delays are attributable to system-level constraints.
3. Enabling a Globally Mobile Workforce
With a significant segment of employees deployed onsite internationally, the current UAN activation process-dependent on Aadhaar-linked Indian mobile OTPs-creates practical barriers for overseas professionals .
The representation calls for calibrated remote authentication solutions, including alternative OTP mechanisms and secure digital verification pathways aligned with global mobility patterns.
4. Aligning Digital Systems with Pension Policy
Following the 2016 amendment permitting deferred pension up to age 60, backend auto-flagging of members as "superannuated" at age 58 has resulted in remittance constraints and unintended interest levies . Synchronising portal logic with statutory policy provisions would ensure uninterrupted pension accrual.
5. Improving Data Synchronisation and Member Portals
Post-rollout of revised ECR functionality, pension remittances have not consistently reflected in member passbooks, leading to PF transfer validation failures . Strengthening backend reconciliation and module integration is critical to ensuring the portal remains a reliable source of truth.
6. Operationalising the "Vishwas" App
Launched on 13 October 2025, the EPFO's "Vishwas" app was envisioned as a trust-based digital interface for employer engagement . However, uneven regional adoption and limited backend integration have constrained its effectiveness. The representation recommends full system integration, defined service-level benchmarks, and uniform nationwide implementation.
7. Enabling Mobility Between EPFO and NPS
Given evolving workforce dynamics, the absence of a structured migration pathway between EPFO and the National Pension System (NPS) limits employee flexibility in retirement planning . A structured switching framework could align social security with modern financial realities.
8. Re-examining ESIC Exemptions
In knowledge-driven sectors where employers provide comprehensive private health coverage, the ESIC exemption framework remains administratively intensive and duplicative . A streamlined, outcome-based exemption model and utilisation audit could enhance efficiency while preserving social security objectives.
9. Extending Social Security to Gig Workers
The Code on Social Security (2020) formally recognises gig and platform workers, but traditional EPFO and ESIC models are structurally misaligned with gig work patterns . The submission proposes leveraging PM-JAY for health coverage and considering NPS-based pension solutions to ensure inclusive yet administratively viable coverage.
NITI Aayog EPFO