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UP Cabinet Approves Non-Profit Corporation to Regulate Outsourced Hiring, Pay and Quotas

The new framework targets recurring complaints of withheld wages by routing salaries plus EPF/ESI straight to employees.

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UP cabinet meeting held Tuesday | Source: X/@CMOfficeUP
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Chief minister Yogi Adityanath chairs a cabinet meeting for the all-round development of the state, at Lok Bhavan in Lucknow. (@CMOfficeUP/X via PTI Photo)

Overview

  • Uttar Pradesh will form the Section-8 Uttar Pradesh Outsource Service Corporation Limited to empanel agencies via the GeM portal instead of departments selecting them directly.
  • Outsourced workers will be engaged on three-year terms with a fixed monthly honorarium of ₹16,000–₹20,000 for 26 working days, with payments credited between the 1st and 5th of each month along with EPF and ESI.
  • Reservations will apply for SC, ST, OBC, EWS, persons with disabilities, women and ex-servicemen, with benefits including maternity leave, periodic training and ₹15,000 funeral assistance.
  • The corporation will introduce written tests and interviews to improve hiring quality, act as a regulator for outsourcing practices and allow termination in cases of irregularities.
  • Officials say the reform is intended to systemise a large outsourced workforce reported at over 11 lakh across 93 departments, with operational rollout details yet to be specified.