24-04-2025
EPF scheme is most suited for construction workers, says Provident Fund Commissioner
The scheme under the Employees' Provident Funds and Miscellaneous Provisions Act of 1952 (EPF) is more beneficial for construction workers than the scheme under the Building and Other Construction Workers (BOCW) Act enacted by the State government, according to a recent order passed by the Regional Provident Fund Commissioner-I, Kochi.
The order has been passed in response to a recent directive of the Kerala High Court to look into whether the scheme under the BOCW Act is more beneficial than the EPF scheme for construction workers and pass appropriate orders in this regard.
In his order, Uttam Prakash, Regional Provident Fund Commissioner-I noted that the EPF, through its contributory, account-linked, and tech-enabled framework, offers a far more resilient, scalable, and sustainable approach to worker's protection and interests.
Lifetime security
The early enrolment advantage, portability across employers and States, digitally verifiable contributions, and proportionate, need-responsive benefits mark it out as a system designed not just for immediate aid but for lifetime security and beyond. The Employees' Provident Fund Organisation's (EPFO) pension and insurance arms, coupled with its structured governance and unified enforcement mechanisms, further strengthen its capacity to adapt to the evolving nature of employment, including transitions from informal to formal sectors.
The order added that based on the principles of adaptability, transparency and empowerment, the EPFO framework stands at a firmer ground that can protect the dignity of labour and ensure a retirement with dignity.
Short-term
The order said that while the BOCW admirably targets the immediate welfare needs of one of the most vulnerable segments of India's workforce, it is increasingly evident that its benefits, though essential, are short-term, uniform, and administratively constrained. Despite its noble intent, the lack of transparency, inconsistent disbursal, and procedural rigidity diminishes its effectiveness, especially in dynamic labour markets like Kerala.
The commissioner ordered that Veegaland Developers Private Limited, which has been covered by the EPF scheme since 2007, to continue with the EPF scheme, instead of the BOCW.
