UP Cabinet approves formation of Outsource Service Corporation

Lucknow: In a landmark step to make outsourcing services more transparent, accountable, and employee-friendly, the Yogi government has approved the formation of the Uttar Pradesh Outsource Service Corporation Limited.

The decision was taken at a Cabinet meeting chaired by Chief Minister Yogi Adityanath, where 15 proposals were cleared, including this major measure to safeguard the interests of outsourcing workers.

The corporation, set up under Section-8 of the Companies Act, 2013, will function as a non-profit public limited company. Departments will no longer directly select outsourcing agencies; instead, agencies will be empanelled through a fair and transparent process via the GeM portal.

Under the new system, outsourced employees will be appointed for three years, with an honorarium of Rs 16,000 to Rs 20,000 per month. Salaries will be directly transferred to employees’ bank accounts between the 1st and 5th of every month, along with EPF and ESI contributions.

In case of irregularities, services can be terminated immediately.

Finance and Parliamentary Affairs minister Suresh Khanna said that the corporation was needed because agencies earlier failed to pay workers their full honorarium and often ignored EPF and ESI contributions. “This step will eliminate irregularities and guarantee every employee their rightful dues,” he said.

The framework also ensures social security and reservation benefits for SC, ST, OBC, EWS, Divyangjan, ex-servicemen, and women. Women will be entitled to maternity leave, while all employees will receive periodic training to enhance skills. In case of death during service, Rs 15,000 will be provided as funeral assistance.

The government said the reform aims not only to strengthen transparency in outsourcing but also to set a new model of employment and good governance in Uttar Pradesh.

In another decision, the Cabinet approved the operation of electric buses on the Net Cost Contract model in Lucknow district, Kanpur city, and nearby towns.

Urban Development minister A.K. Sharma said 9-meter-long AC e-buses will operate on 10 routes each in Lucknow and Kanpur, with at least 10 buses on

every route.