Capacity boost for EPFO, ESIC to pave way for labour reforms

New Delhi: The ministry of labour and employment will fast track governance and administrative reforms and enhance capacity at its two key social security organisations - Employees' Provident Fund Organisation (EPFO) and the Employees' State Insurance Corporation (ESIC) in the first 100 days of the new government.

The move is aimed at preparing the groundwork for introducing social security benefits to gig and platform workers under the Labour Codes, which are expected to be rolled out by next fiscal. Soon after taking charge, labour and employment minister Mansukh Mandaviya held several rounds of review meetings with top officials of the labour ministry, EPFO and ESIC, and called for continuation of the government's key labour reform agenda. "Labour reforms with a view on universal social security and employment creation is the focus of the government," a senior government official told ET, adding reforms at EPFO and ESIC would prepare them to handle a bigger subscriber base with quality service in a transparent and time bound manner.

The government is likely to extend benefits like provident fund and pension to unorganised sector workers under EPFO while health services would be given under ESIC.

The Social Security Code, 2020, passed by Parliament in 2020, entails extending social security to gig and platform workers. Some of the changes envisioned for retirement fund body EPFO in the short, medium, and long term include restructuring of its offices, business process re-engineering, and leveraging IT for automatic settlement of claims and cadre restructuring.

Capacity expansion under ESIC, on the other hand, include setting up new hospitals and pan-India convergence of ESIC scheme with Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) to allow both PMJAY and ESIC subscribers avail health services of each other.

The broader aim is to create innovation-driven social security organisations and give seamless and uninterrupted services in a contactless, paperless and transparent manner to stakeholders using the latest technology.