Uttar Pradesh government to set up corporation to streamline hiring of outsourced staff

The corporation, established under Section-8 of the Companies Act, 2013, will function as a non-profit public limited company. From now on, outsourcing agencies will no longer be selected directly by departments; instead, the corporation will empanel agencies through a fair and transparent process via the GeM portal, a statement said.

Under the new system, outsourced employees will be appointed for three years, with an honorarium of Rs 16,000 to Rs 20,000 a month. Salaries will be transferred directly to employees’ bank accounts between the 1st and 5th of every month, along with EPF and ESI contributions, ensuring financial security. In case of irregularities, services can be terminated immediately.

Finance and Parliamentary Affairs Minister Suresh Khanna said 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,” he said.

The new framework also provides social security and reservation benefits. SC, ST, OBC, EWS, specially abled, ex-servicemen, and women will receive reservation as per constitutional provisions. Women employees will be entitled to maternity leave, while all workers will receive periodic training to enhance skills. Additionally, Rs 15,000 will be provided as funeral assistance in case of death during service.

The minister said that with this reform, the government aims at strengthening transparency in outsourcing and set a new model of employment and good governance in Uttar Pradesh.

Key features of new system

• Transparent agency selection via GeM portal
• Rs 16,000–20,000 monthly honorarium for employees
• Services for 26 days per month, with a three-year term
• Direct salary, EPF & ESI transfers to employees’ accounts
• Written tests and interviews to ensure quality recruitment
• Social security benefits including maternity leave and funeral assistance

Nod for export promotion policy

In another key decision, the Cabinet on Tuesday approved the Export Promotion Policy 2025–30, an upgraded version of the 2020–25 policy. The new policy places emphasis on digital technology, infrastructure development, financial assistance, export credit and insurance, market expansion, as well as training and capacity building.
Its key target is to increase the number of registered exporters by 50 per cent by 2030 while ensuring regional balance by linking all districts with export activities. The government expects the policy to not only boost the quality and volume of exports, but also strengthen Uttar Pradesh’s position as a major global export hub.