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To speed up the process of extending provident fund (PF) coverage to construction and contract workers, the Employees Provident Fund Organisation (EPFO) has asked all its regional offices to expedite the process of enrolment.
Noting that a number of instructions had been issued in the past in this regard, a circular dated January 22 by the Additional PF Commissioner has instructed all its regional offices to hold meetings with State governments, large establishments (with over 500 employees), such as the Railways, units employing over 100 workers and unions and monitor the activities and send information to the head office.
“At least five to 10 meetings be conducted in the areas where labourers are predominantly residing (involving labour unions also). The details of these should also be brought to the notice of the headquarters,” it said citing instructions sent on January 8.
As per National Sample Survey (2011- 2012) estimates, there are about 50.22 million building and other construction workers, including contract workers, many of whom keep moving from one location to another. All regional PF offices have also been conveyed the concerns of the Parliamentary Standing Committee on Labour, which in its meeting earlier this month, urged the EPFO to “work hard” on coverage of construction and contract workers.
Last year, the EPFO had set up two sub-committees to suggest ways to close the gap in coverage of construction and contract workers, many of whom are not stationed in one location. According to Labour Ministry estimates, over ₹27,000 crore lying in operative accounts belong to this section of workers.
In a circular in October 2013, the retirement fund body had also cited instances brought to its notice of placement agencies and contractors providing guards, security and other personnel to government departments, autonomous bodies and so on, which were diverting residual employer contribution and “pilfering provident fund money”.
Addressing a seminar in December 2014, Labour Minister Bandaru Dattatreya had said that details of contract workers in each establishment will be put up on the Shram Suvidha Portal.
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