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Published: Apr 18, 2023
Updated: Apr 18, 2023

India's Social Security System Gets a Boost from EPFO and ESIC in 2023

Social security is a critical aspect of any country's welfare state, and India is no exception. To ensure that every worker in India receives social security benefits, the government has set up two institutions - the Employees' Provident Fund Organisation (EPFO) and the Employees' State Insurance Corporation (ESIC). These two institutions are responsible for providing financial security to the Indian workforce. In 2023, the government of India has introduced new steps to strengthen these institutions further. In this article, we will explore the role of EPFO and ESIC in shaping the social security of the Indian workforce and the new government steps.

The Role of EPFO and ESIC in Shaping Indian Social Security:

EPFO and ESIC are two critical institutions in India's social security system. The Employees' Provident Fund Organisation manages a social security scheme for the workforce engaged in the organised sector, while the Employees' State Insurance Corporation provides insurance coverage for employees engaged in the unorganised sector. Both these institutions play a vital role in providing financial security to the Indian workforce.

The government of India has taken various steps over the years to strengthen the social security system. One of the significant steps is the introduction of the Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme. This scheme is targeted at unorganised sector workers who earn less than INR 15,000 per month. Under this scheme, the government provides a monthly pension of INR 3,000 after the worker attains the age of 60. The scheme has been beneficial to millions of unorganised sector workers in India.

Government Steps to Strengthen the Institutions:

In 2023, the government of India has introduced new steps to strengthen EPFO and ESIC further. The government has increased the monthly wage limit for coverage under the EPFO from INR 15,000 to INR 21,000. This means that more workers in the organised sector will now be eligible for social security benefits. The government has also announced a new scheme called Atal Bimit Vyakti Kalyan Yojana (ABVKY). This scheme is targeted at workers who have lost their jobs due to reasons beyond their control. Under this scheme, the government will provide financial assistance of up to 50% of the workers' average wage for a maximum of 90 days.

India's social security system is undergoing a significant transformation with the government's steps to strengthen EPFO and ESIC. The increase in the wage limit for coverage under EPFO and the introduction of the ABVKY scheme will provide financial security to more workers in India. These steps will go a long way in ensuring that every worker in India receives social security benefits and the country moves towards a more inclusive welfare state