EPFO planning mechanisms to bring six crore construction workers under social security ambit

Chennai:

More than six crore construction workers could be eligible for employee provident fund as the Employees' Provident Fund Organisation (EPFO) is working towards providing them with social security number in the next six months.

Addressing a interactive session organized by Builders Association of India here on Friday, Central Provident Fund commissioner K K Jalan said that the builders should be prepared for paying provident fund to the casual and temporary construction workers in the next six months as the government is working towards providing the workers with a permanent account number. “After this, if they fail to pay their employees PF, then it will tantamount to be an economic offence,” he said.

This comes in the wake of builders fighting relentlessly against the applicability of the Provident Fund provisions to the casual and temporary construction workers stating it can’t be implemented unless the workers are provided with a social security number. Interestingly, BAI has been petitioning the government to see reason and has been suggesting ways and means to successfully implement the Provident Fund provisions in such a way that intended benefit reaches to the casual and temporary construction workers, who are mostly illiterate and mainly migratory in nature.

Jalan said that it is estimated that the construction sector has six crore workers but it is an irony that less than five per cent (below 30 lakh) are covered under the social security net. He also said that of the 41 lakh workers receiving pension, only one lakh are construction workers.

Interestingly, EPFO is on major computerization drive and Jalan says his organization will come out with online registration of provident fund. He said this would usher in transparency. “More than 60 per cent so called registration numbers don’t receive any payment. This will ensure compliance as well as change the face of EPFO. The registration of EPF will be made online by November 30,” he added.

He also warned the firms violating the PF norms by fudging the employee strength. “As per norms, a firm is eligible for PF if it hires more than 20 employees,” he said, adding that many firms  fail to register their employees. “Companies are playing with crores but not providing social security to employees. This is an economic offence,” he said.

He said that the EPFO expenditure is around Rs 200 crore which is minimal across the world.