HR News

Government plans to Strip EPFO & ESIC powers to manage corpus through social security law

The government plans to strip EPFO and ESIC of the power to manage social security corpus of nearly 10 crore employees as part of a move to create a single window system for social 
security benefits at state level and increase the number of subscribers fivefold.
Under the proposed labour code on social security, the labour ministry is pushing for setting up social security boards in states as single point contacts as it believes the EPFO and ESIC will not be able to cater to the vastly increased workload, said officials.
They said the move would not only help extend social security cover to more than 50 crore workers across the country but also increase compliance on the part of the employers, along with 
creating a single window system across states for all kinds of social security including medical insurance, maternity benefits and disability cover.
A pilot project will be launched in a few districts and 
depending on its success the idea would be scaled up across India over the next few years once the proposed legislation on social security code is passed in Parliament, said the official.
Source:ET