Tue Sep 02 19:45:00 UTC 2025: **Summary:**
The Uttar Pradesh (UP) Cabinet has approved the formation of the Outsource Service Corporation Limited, a non-profit public limited company, to manage the hiring and payment of outsourced employees in the state. This move aims to increase transparency, accountability, and employee benefits in the outsourcing sector. The corporation will empanel agencies through the government e-marketplace portal, ensuring a fair and transparent selection process. It will also ensure direct salary transfers, EPF and ESI contributions, and provide benefits such as maternity leave, funeral assistance, and skill training. The new system will also implement reservations for SCs, STs, OBCs, EWS, Divyangjan, ex-servicemen, and women.
**News Article:**
**Uttar Pradesh Establishes Corporation to Oversee Outsourced Workers, Ensure Fair Treatment**
**LUCKNOW, September 3, 2025** – The Uttar Pradesh (UP) government has launched the Outsource Service Corporation Limited to overhaul the state’s outsourcing practices. The decision, approved by the Cabinet on Tuesday and chaired by Chief Minister Yogi Adityanath, aims to bring transparency and accountability to the sector while protecting the rights of outsourced workers.
The corporation, operating as a non-profit public limited company, will be responsible for empanelling outsourcing agencies through a transparent process via the government e-marketplace portal. This replaces the previous system where individual departments directly selected agencies, often leading to irregularities.
“This is a landmark move to make outsourcing services more transparent, accountable, and employee-friendly,” stated an official government statement.
Under the new system, outsourced employees, who will be appointed for three years with a monthly honorarium of ₹16,000-₹20,000, will receive salaries directly into their bank accounts between the 1st and 5th of each month. Mandatory Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) contributions will also be ensured.
“The corporation was necessary as agencies earlier failed to provide workers their full honorarium and often neglected mandatory EPF and ESI contributions. This step will eliminate irregularities and guarantee every employee their rightful dues,” said U.P. Finance Minister Suresh Khanna.
The initiative also prioritizes social justice, with reservations allocated for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), Economic Weaker Sections (EWS), Divyangjan, ex-servicemen, and women, in line with constitutional provisions. Additional benefits include maternity leave for women employees, periodic skill-enhancement training for all, and funeral assistance of ₹15,000 in the event of death during service.
The UP government hopes that this move will set a new standard for outsourcing practices, ensuring fair treatment and enhanced social security for its outsourced workforce.
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