Government Pushes EPFO Digital Transformation as Social Security Coverage Expands

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The Central Government stated on Friday that approximately 101 crore people—representing over 68 percent of the country’s population—are now covered under India’s social security system. This achievement has also been lauded by the International Labour Organization (ILO). Union Minister for Labour and Employment Dr. Mansukh Mandaviya emphasized the need for a balanced development model that promotes worker welfare and social security while simultaneously ensuring ease of doing business for employers.

Addressing the 4th Global Industrial Relations Summit—jointly organized by the All India Organisation of Employers (AIOE) and FICCI in the national capital—the Union Minister stated that continuous coordination among the government, industry, employers, workers, and trade unions is essential to maintain harmony in industrial relations, thereby allowing economic growth and job creation to progress hand in hand.

He remarked that industrialization is crucial for national development as it accelerates job creation. Highlighting the growing role of Self-Help Groups (SHGs) and cooperative models—particularly women-led initiatives—he noted their significant contribution to expanding livelihood opportunities, strengthening the economy, and fostering women’s empowerment.

Referring to the improvement in employment elasticity, Dr. Mandaviya noted that for every 1 percent growth in GDP, employment now rises by 1.11 percent, whereas 12 years ago, this figure stood at a mere 0.008 percent. He announced that the Employees’ State Insurance Corporation (ESIC) would no longer be the sole provider of healthcare services under its scheme; high-performing private hospitals could also be designated to provide ESIC facilities. He described this as part of the upcoming reforms within the ESIC.

The Union Minister also highlighted the steps taken by the Employees’ Provident Fund Organisation (EPFO) to fully digitize the claims process and enable the automatic transfer of accounts through a single Universal Account Number (UAN). She also mentioned that the possibility of UPI-based withdrawals is being considered.

Michiko Miyamoto, Director of the ILO Decent Work Technical Support Team (DWT) and Country Office for India, stated that according to ILO estimates, more than one billion people in India are now covered by at least one social security scheme. She added that this achievement would play a crucial role in giving new momentum to India’s economic growth in the coming years.

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