EPFOS program is more beneficial to construction workers: Regional Provident Fund Specialist
The EPFO's Provident Fund Program provides better protection for construction workers compared to New Delhi under the EPF Act (EPF Act), and the Regional Public Welfare Fund Commissioner ruled that ambiguity between the two regulations is ruled.
The clarification order of the Regional Provident Fund Commissioner (RPFC) that Kochi Uttam Prakash had a significant impact on the labor welfare in India after the Kerala High Court issued a directive to resolve the long-term conflict between the two governments and to be responsible for social security in the construction industry.
When processing written petitions submitted by Veegaland Homes Pvt. Real Estate Developer Co., Ltd. (Ltd.
After evaluating the two welfare frameworks, the RPFC concluded that the EPF program provides superior protection for construction workers compared to the BOCW framework.
The order outlines key advantages, including lifetime pension coverage under the Employee Pension Plan (EPS), benefits through an employee’s deposit-linked insurance plan (EDLI), benefits between state and employer and timely long-term savings, and access to and complaint remedies for technology-driven services and complaints, substantial death and disability benefits.
By contrast, despite the large collection of benefits taxes, the BOCW Welfare Commission faces the challenges of inefficiency, low coverage, underfunded funds, and access to poor registrations through design, the RPFC order said.
It noted that workers often strive to obtain the basic rights of the program.
The petitioner of the Kerala High Court argued that under the central and state welfare system, employers bear unfair double compliance burdens.
Although the EPF Act is nationally owned by the EPFO, the BOCW Act is enforced by the state-level welfare committee and generally varies greatly in terms of welfare delivery across states.
As India continues to rely on its informal workforce to build its infrastructure and cities, the Kerala High Court-led resolution can be the cornerstone of a more inclusive, effective and future labour protection framework.
Experts added that by prioritizing structured, portable and enforceable benefits, the RPFC order reaffirms the constitutional commitment of social justice and sets a strong precedent for mainstreaming informal labor into social security.
