Lucknow, September 2, 2025 – In a major step to improve the lives of millions of workers, the Uttar Pradesh government, led by Chief Minister Yogi Adityanath, approved a new outsourcing policy during a cabinet meeting on Tuesday. The policy, which aims to make hiring fairer and protect workers’ rights, has been hailed as a bold move to fix long-standing issues like low wages and exploitation in the state’s outsourcing system. This decision is part of 15 proposals cleared in the meeting, showing the government’s focus on better governance and job security.
The heart of this new policy is the creation of the Uttar Pradesh Outsource Service Corporation Limited, a non-profit organization set up under Section 8 of the Companies Act, 2013. For years, workers hired through outsourcing agencies in Uttar Pradesh faced problems like unfair pay, delayed salaries, and no job security. The new corporation changes all that. Instead of government departments directly picking agencies, the corporation will now select them through a transparent process on the Government e-Marketplace (GeM) portal. This means no more shady deals or favoritism.
Under the new rules, outsourced workers will get a three-year contract with a monthly salary of Rs 16,000 to Rs 20,000. Their salaries, along with contributions to the Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI), will go straight to their bank accounts, cutting out middlemen who often pocketed part of the money. If a worker passes away during service, their family will receive Rs 15,000 for funeral expenses. The policy also includes social benefits like maternity leave for women, reservations for Scheduled Castes, Scheduled Tribes, Other Backward Classes, and other groups as per government rules, and even training to help workers improve their skills.
“This is a big win for the 10 to 12 lakh contractual workers in Uttar Pradesh,” said State Finance Minister Suresh Kumar Khanna after the meeting. “We’ve heard complaints about agencies not paying workers properly or skipping EPF and ESI contributions. This corporation will make sure workers get what they deserve.” The policy also sets strict standards for hiring, including written tests and interviews to ensure only qualified people are chosen.
The move has been welcomed by many, especially worker groups who have long fought against exploitation. “This is a step toward fairness,” said V.P. Mishra, president of a state employees’ group. “It gives workers respect and security.” However, some worry about how the policy will be put into action, given the huge number of workers and departments involved- 93 in total, from schools to government offices.
This isn’t the first time the Yogi government has tackled outsourcing issues. Back in 2019, they started working on a policy to protect workers, and in 2024, there were talks about adding reservations for contractual staff. The new corporation builds on those efforts, aiming to set a model for other states. With Uttar Pradesh being one of India’s biggest employers of outsourced workers, this policy could change lives and inspire similar reforms elsewhere.
As the government rolls out this plan, all eyes are on how it will be carried out. For now, workers are hopeful. With transparency and fairness at its core, the new outsourcing policy promises a brighter, more secure tomorrow for Uttar Pradesh’s workforce.
