Executive Summary:
The Ministry of Labour and Employment addresses labour reforms and worker welfare under the EPFO and ESIC in response to Lok Sabha Unstarred Question No. 2470, to be answered on August 4, 2025. The government enacted four Labour Codes to strengthen worker welfare by simplifying and consolidating 29 Central Labour Acts. Digital platforms like Shram Suvidha and eShram play a key role in service delivery to both organised and unorganised workers.
Key Points / Main Content:
Labour Codes:
* Four Labour Codes were enacted: the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020.
* The Labour Codes aim to strengthen worker welfare, including unorganized workers, by ensuring statutory minimum wages, social security, and healthcare.
* The Code on Wages, 2019, universalizes the right to minimum wages and timely payment for all workers.
Social Security Enhancements (Code on Social Security, 2020):
* ESIC coverage is extended pan-India and can be voluntary for establishments with less than 10 employees.
* ESIC benefits can apply to establishments with even a single employee in hazardous or life-threatening occupations.
* EPF provisions apply to establishments with twenty or more employees.
* A Social Security Fund is envisioned for unorganized workers, gig workers, and platform workers.
* The Central Government can extend benefits to unorganized workers, gig workers, platform workers, and their families through ESIC or EPFO.
Digital Platforms:
* eShram portal (launched August 26, 2021) creates a National Database of Unorganised Workers (NDUW) seeded with Aadhaar, providing a Universal Account Number (UAN).
* Shram Suvidha Portal (SSP) (launched October 16, 2014) generates a Labour Identification Number (LIN) online for businesses and employers, easing compliance through online registration, licensing, and return filing, and implementing a randomized risk-based inspection system.
Impact Analysis:
Workers (Organized and Unorganized):
Impact: Enhanced social security, healthcare, and minimum wage rights. Access to a Social Security Fund and extended benefits through ESIC/EPFO.
Action Required: Register on the eShram portal (for unorganized workers).
Employers:
Impact: Simplified compliance through the Shram Suvidha Portal, including online registration, licensing, and return filing.
Action Required: Register on the Shram Suvidha Portal to obtain a LIN.
Government (Ministry of Labour and Employment):
Impact: Streamlined labour law implementation and improved service delivery through digital platforms.
Action Required: Continue to manage and develop the eShram and Shram Suvidha portals.
Key Entities Referenced
Employees Provident Fund Organisation EPFO: A social security organization providing financial security to workers through provident fund schemes.
Employees' State Insurance Corporation ESIC: A social security organization providing medical and cash benefits to workers in case of sickness, maternity, and employment injury.
Code on Wages, 2019: A Labour Code that universalizes statutory right for minimum wages and timely payment of wages to all workers.
Code on Social Security, 2020: A Labour Code aiming to extend social security benefits to all workers in both organized and unorganized sectors.
Industrial Relations Code, 2020: A Labour Code related to industrial relations.
Occupational Safety, Health and Working Conditions Code, 2020: A Labour Code related to occupational safety, health, and working conditions.
eShram Portal: A portal launched by the Ministry of Labour and Employment for the creation of a National Database of Unorganised Workers.
Shram Suvidha Portal SSP: A portal that generates a unique Labour Identification Number (LIN) online to businesses and employers.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 2470
TO BE ANSWERED ON 04.08.2025
LABOUR REFORMS AND WORKERS WELFARE UNDER EPFO AND
ESIC
2470. DR. BHOLA SINGH:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)the details of the key reforms introduced by the Government in
labour welfare, wage standardisation and social security;
(b)the details of the impact of reforms on workforce formalisation,
The Employees Provident Fund Organisation (EPFO)/Employees'
State Insurance Corporation (ESIC) coverage and safety;
(c)the details of the role of digital platforms like Shram Suvidha and
e-Shram in service delivery; and
(d)the manner in which said reforms benefitted the informal and
unorganised workers?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The Government has enacted four Labour Codes namely,
the Code on Wages, 2019, the Code on Social Security, 2020, the
Industrial Relations Code, 2020 and the Occupational Safety, Health
and Working Conditions Code, 2020 after simplification,
amalgamation and rationalization of the relevant provisions of the
existing 29 Central Labour Acts. The Labour Codes have been
enacted with an objective of strengthening the welfare of workers,
including unorganized workers in terms of statutory minimum wage,
social security and healthcare. The Code on Wages, 2019 has
universalized statutory right for minimum wages and timely payment
of wages to all workers to support sustainable growth and inclusive
development. Code on Social Security, 2020 (CoSS) aims to extend
social security benefits to all workers both in the organised and
unorganised sectors. The provisions introduced in this Code to
enhance coverage of social security are as follows:
Contd..2/-:: 2 ::
i. The coverage of Employees' State Insurance Corporation
(ESIC) has been extended pan-India as against notified
districts/areas, enabling the provisions for ESIC coverage on
voluntary basis for establishments having less than 10 employees.
Further, benefits under ESIC can also be made applicable to an
establishment which carries on hazardous or life threatening
occupation as notified by the Central Government, in which even a
single employee is employed. The provisions of CoSS relating to
Employees’ Provident Fund are applicable to every establishment in
which twenty or more employees are employed.
ii. The Code envisages a Social Security Fund for formulating
schemes for welfare of the unorganized workers, gig workers and
platform workers.
iii. The Central Government has been empowered to extend benefits
to unorganized workers, gig workers and platform workers and the
members of their families through ESIC or Employees’ Provident Fund
Organization.
The initiatives like e-Shram Portal and Shram Suvidha
Portal have played an important role in service delivery. The details
are as follows:-
(i) The Ministry of Labour and Employment launched e-Shram
portal (eshram.gov.in) on 26th August 2021 for creation of a
comprehensive National Database of Unorganised Workers (NDUW)
seeded with Aadhaar. The portal is meant to register and support the
unorganised workers by providing them a Universal Account Number
(UAN) on a self-declaration basis.
(ii) The Shram Suvidha Portal (SSP) was launched on 16th October,
2014. The Directorate General Mines Safety (DGMS), Chief Labour
Commissioner (CLC), Employees’ Provident Fund Organisation (EPFO)
and Employees’ State Insurance Corporation (ESIC) through SSP
generates a unique Labour Identification Number (LIN) online to
businesses and employers registered on the portal. The portal has
eased the complexity of compliance by providing the facilities of
online registration, license and return filing to business entities along
with randomised risk based inspection system, thereby reducing
subjectivity, for the law implementing agencies.
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