Study on Expansion of Social Security and Labour Standards in The Organised Sector in India

Aims and Objectives: The aim of the study is to examine the measures taken to expand social security coverage in India’s formal sector and assess the impact of these changes on labour relations and labour standards. The study focuses on analyzing the Employees’ Provident Fund Organisation (EPFO) enrolments and the effectiveness of recent governmental measures, particularly the use of payroll data to gauge the formalization of employment and social security coverage.

Methodology: The study employs a mixed-method approach, including a quantitative analysis of EPFO enrolment data from 2004-05 to 2019-20, using Employment Survey data from the NSO and PLFS. It also includes a survey of over a thousand workers in EPF-registered establishments, qualitative interviews with employers, contractors, and trade unions, and an analysis of payroll data to evaluate trends in enrolment and the effectiveness of recent policy changes.

Findings:

• Significant increase in EPFO enrolments, though not in the share of enrolled employees.
• Payroll data indicates a rise in enrolment rates but is insufficient for analyzing net enrolment trends.
• Recent changes have facilitated and incentivized EPFO enrolment, but systemic barriers persist.
• Employers often prefer a precarious workforce, limiting the effectiveness of social security measures.
• The precarious nature of employment affects workers’ ability to claim social security and other entitlements.

Recommendations:

• Implement a universal social security registration system linked to worker registration.
• Advocate for a more open data policy by the EPFO.
• Publish the total number of EPFO subscribers each month for greater transparency.