New Delhi: With the launch of the unique account number (UAN) for provident fund members, the Employees’ Provident Fund Organisation (EPFO) plans to expand its coverage and bring in more workers from the construction sector as well as contract employees under its ambit.
EPFO plans to expand its coverage and bring in more workers from the construction sector as well as contract employees under its ambit.
Accordingly, the EPFO has set up two sub-committees under the Central Board of Trustees to suggest ways on how to expand the scheme to bring in more works from these sectors. Both the sub-panels will be chaired by central provident fund commissioner KK Jalan.
“Typically, contract workers and construction sector workers lose out on social security benefits as they frequently change their jobs. In the case of construction sector workers, the problem is more magnified as they are often migrant workers,” said a senior PF official, pointing out that the UAN will address these issues as it provides PF account portability.
“The sub-committees will suggest mechanism for increasing the coverage of construction sector and contract workers,” said an official missive.
The EPFO’s apex decision making body — the Central Board of Trustees had in its meeting in August suggested setting up these two panels. Sources said that some of the proposals suggested by the two panels will be reviewed by the trustees in their meeting next week.
The EPFO estimates that a large part of the Rs 27,000 crore lying with it in inoperative accounts belongs to workers from these two sectors who have been unable to retrieve these savings due to frequent job changes.
The EPFO with over 4.7 crore workers has been trying to meet the challenge of providing more comprehensive social security benefits to construction sector workers. The sector is the second largest employer in the country with over 35 million workers.
