Here’s what the latest news tells us about this development: the Uttar Pradesh Cabinet on Tuesday, September 2, 2025, approved the establishment of the Uttar Pradesh Outsource Service Corporation Limited, aimed at introducing a structured, transparent, and fair system for outsourcing across state departments.
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Key Highlights
New Entity: The Uttar Pradesh Outsource Service Corporation Limited will be formed under Section-8 of the Companies Act, 2013, as a non-profit public limited company.
Transparent Selection: Instead of departments individually choosing outsourcing agencies, the corporation will centralize agency empanelment using the GeM (Government e-Marketplace) portal.
Employee Benefits:
Honorarium: ₹16,000–₹20,000 per month, directly credited to employees' bank accounts between the 1st and 5th of each month.
Statutory Contributions: EPF and ESI contributions will also be directly deposited.
Appointment Term: Contracts will last for three years.
Fair Recruitment Process:
Selection will include written exams and interviews to ensure merit-based hiring.
Social Security & Inclusive Provisions:
Reservation for SC, ST, OBC, EWS, Divyangjan (persons with disabilities), ex-servicemen, and women, aligning with constitutional norms.
Maternity leave for women and periodic skill training for all employees.
Funeral Assistance: ₹15,000 provided to the family in case of an employee's death during service.
Accountability Measures:
In cases of irregularities, the service of the concerned agency can be terminated immediately.
Rationale:
This move is designed to curb long-standing issues where employees weren’t receiving full wages or their EPF/ESI benefits weren’t being credited properly by agencies. The reform seeks to protect their rights and establish a new, transparent model for outsourcing employment.
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Summary Table
Feature Details
Entity UP Outsource Service Corporation Ltd (Non-profit, Section-8, Companies Act 2013)
Selection Process Empanelment via GeM portal; recruitment via tests and interviews
Contract Duration 3 years
Monthly Honorarium ₹16,000–₹20,000
Salary Disbursement Direct bank transfer (1st–5th of month)
Benefits EPF, ESI, maternity leave, skill training, reservation, funeral aid
Grievance Mechanism Quick termination of agencies in case of irregularities
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This initiative represents a significant stride towards safeguarding the welfare of outsourced workers in Uttar Pradesh by ensuring transparency, fair compensation, and essential benefits—while also reinforcing governance standards in recruitment and service delivery.
Would you like to explore its implications for existing outsourced staff, impact on different departments, or comparisons with practices in other states?
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