CM Yogi Launches Outsourced Services Corporation, Doubles Honorariums, and Ends Company Salary Deductions

In a sweeping governance reform aimed at safeguarding the dignity and financial security of contractual staff, Uttar Pradesh Chief Minister Yogi Adityanath has announced landmark protections for the state's approximately 3.5 lakh outsourced employees. Officiating the launch of the Uttar Pradesh Outsourced Services Corporation (UPOSC) at the Lok Bhavan in Lucknow, the Chief Minister declared an end to systemic exploitation by middlemen and private agencies. Under the new framework, outsourcing companies are strictly barred from making unauthorized deductions from worker salaries, while the state government will independently cover all agency service charges.

Ending the Arbitrary 'Pick and Choose' System and Safeguarding Jobs

Addressing the formal launch event, where the corporation's official logo, web portal, and website were unveiled, CM Yogi emphasized that permanent and outsourced personnel form the vital backbone of Uttar Pradesh's rapid developmental growth. To protect these workers from arbitrary termination, the state has instituted a strict regulatory barrier: private agencies can no longer discharge employees at whim. Any proposed dismissal now requires mandatory prior notification to the government, and removal can only occur following a formal, transparent investigation.

Furthermore, the state government has nearly doubled the honorarium of outsourced workers, ensuring that individuals receive fair compensation commensurate with their hard work and professional dignity.

Robust Social Security, Health Insurance, and SBI Insurance Agreements

The newly established corporation ensures that employee welfare extends far beyond basic wages. Provident Fund (EPF) contributions will now be securely deposited directly in each worker's name, and medical care will be facilitated through Employee State Insurance (ESI). In scenarios where specialized medical treatment is unavailable through ESI channels, workers will be seamlessly extended cashless medical coverage of up to ₹5 lakh under the Ayushman Bharat Yojana.

Additionally, a landmark memorandum of understanding (MoU) was signed with the State Bank of India (SBI) during the ceremony to provide extensive financial safety nets:

• Accidental Death Cover: The next of kin of employees will receive financial compensation ranging between ₹20 lakh to ₹50 lakh in the event of accidental fatality.

• Disability Support: A specialized payout of ₹10 lakh is designated for permanent disability cases resulting from accidents.

• Educational Loans: The banking partner will facilitate specialized education loans ranging from ₹8 lakh to ₹10 lakh to support the higher education of employees' sons and daughters.

Targeting Past Exploitation and Ensuring Direct Transparency

Contrasting current reforms with governance models prior to 2017, the Chief Minister asserted that previous administrations treated outsourced staff as expendable burdens, often awarding recruitment contracts to political cronies and relatives who systematically exploited workers through salary cuts and uniform fees.

The launch of the UPOSC effectively dismantles this outdated patronage network, extending comprehensive financial security covers to benefit nearly 2 million family members dependent on the state's 3.5 lakh outsourced personnel. Highlighting the administration's worker-centric focus, Deputy Chief Minister Keshav Prasad Maurya noted a 100% effective increase in employee honorariums, while Deputy Chief Minister Brajesh Pathak praised the workforce for driving state progress and urged steadfast support for transparent governance.