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This may assist unorganized employees get lined beneath EPFO’s social safety internet. It is going to additionally facilitate switch of advantages by way of direct profit switch (DBT) in occasions of any disaster just like the pandemic whereas making it simpler for the federal government to trace motion of employees at any given time, a senior authorities official instructed ET.
“The registration of unorganized employees and subsequent portability of their UAN with EPFO is step one in direction of the federal government’s plan to offer a common social safety to all,” the official quoted above mentioned.
The subscribers of EPFO are entitled to provident fund, pension and insurance coverage advantages beneath three completely different schemes on the time of retirement.
Alternatively, when the prevailing EPFO subscribers transfer out of the group to be a part of an unorganised workforce, they’ll proceed to avail advantages beneath the scheme.
The Social Safety Code, 2020 permits the federal government to border new insurance policies for gig and platform employees and different unorganised employees beneath the umbrella of current social safety schemes together with the Staff’ Provident Fund and Staff’ State Insurance coverage Company (ESIC).
Trade is of the view that offer chain and ecosystem of casual economic system instantly impacts the financial development and effectivity of the formal sector and therefore the well-being of casual sector employees may be very important.
“There are migrant employees amongst these unorganised employees and we’ve got had a problem of monitoring them through the pandemic. With Aadhaar-linked UAN this drawback might be addressed and since it’s moveable with EPFO, the brand new social safety code which as soon as applied will assist them to avail these advantages,” Sougata Roy Choudhury, govt director, Confederation of Indian Trade (CII) mentioned.
In accordance with estimates by the labour ministry, India has roughly 470 million employees. Out of this, at the least 100 million employees are within the formal sector and lined beneath EPFO and ESIC. Of the remaining 370 thousands and thousands employees who’re within the unorganized sector, the federal government has enrolled and issued a singular quantity to 280 million employees and one other 90-100 million are anticipated to be lined earlier than the tip of 2022.
Permitting Interoperability
UAN of unorganised employees now moveable with EPFO
Thus far, 280 million have been given UAN by way of the portal These registered with e-Shram can avail PF advantages
This shall be attainable as soon as the Social Safety Code kicks in
The transfer is predicted to learn 370 million employees Will assist govt observe motion of employees Switch of advantages although DBT will even be facilitated
