EPFO Scheme Offers Greater Benefits for Construction Workers: Regional PF Commissioner
Dubela, Kankana Maity: A regional provident fund commissioner has clarified that the EPFO’s provident fund scheme under the EPF Act offers stronger protection for construction workers than the benefits provided under the BOCW framework, resolving confusion between the two laws.
The clarification order issued by Regional Provident Fund Commissioner (RPFC) Kochi, Uttam Prakash, marks a pivotal development in labour welfare across India. This move follows a directive from the Kerala High Court to resolve a prolonged conflict between two key national legislations governing the social security of construction workers, promising far-reaching implications for the sector.
In a ruling on a writ petition by Veegaland Homes Pvt. Ltd., the court instructed the RPFC, Kochi, to assess whether the EPF Act, 1952 or the BOCW Act, 1996 offers better welfare coverage for construction workers. After review, the RPFC determined that the EPF scheme ensures stronger and more comprehensive protection than the BOCW framework.
The order highlighted major benefits such as lifelong pension under the Employees’ Pension Scheme (EPS), significant death and disability coverage through the Employees’ Deposit-Linked Insurance Scheme (EDLI), seamless benefit portability across jobs and locations, high-yield long-term savings, and streamlined, tech-enabled service access and grievance resolution.
The RPFC order highlighted that, unlike the more streamlined central system, BOCW welfare boards suffer from inefficiency, limited worker coverage, poor fund utilization, and systemic barriers to registration. It noted that workers often face difficulties in accessing even basic benefits. The petitioner before the Kerala High Court argued that employers face an unjust dual compliance burden under both central and state welfare systems.
Although the EPF Act is managed at the national level by the EPFO, the BOCW Act is implemented by state-specific welfare boards, leading to significant differences in how benefits are provided from one state to another.
As India continues to depend heavily on its informal workforce to develop its infrastructure and urban landscapes, the Kerala High Court’s directive could mark a pivotal step toward a more inclusive, robust, and future-oriented labour protection system, an expert observed.
By emphasizing the need for structured, portable and enforceable social benefits, the RPFC ruling reinforces the constitutional mandate of social justice and establishes a compelling benchmark for incorporating informal workers into the formal social security framework, the expert further asserted.
