Contract, daily wage workers under MGNREGA eligible for EPF, details inside

Kottayam: Contract and daily wage employees working under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in Kerala are now eligible for Employees Provident Fund Organisation (EPFO) benefits. The local government department has decided to extend the scheme to workers at the village, block, district, and state levels, subject to specific conditions.

Under the EPF Act, employees earning minimum wages up to Rs 15,000 should be made members of the scheme. However, the current minimum wage for contract employees in the employment guarantee act is Rs 24,040. As a result, such employees will be included in the scheme only upon application. For temporary employees earning up to Rs 15,000, EPF membership is mandatory.

A temporary employee earning Rs 15,000 per month or more will need to contribute Rs 1,800 (12 percent of Rs 15,000) to their provident fund. The employer will contribute Rs 1,950 (13 percent of Rs 15,000). Local bodies and the concerned district or state authorities are instructed to register themselves as employers on the Shram Suvidha Portal and ensure that the total contribution is deposited into the EPF fund before the 15th of every month.

Central funds

The central government allocates funds for administrative expenses under the employment guarantee scheme. However, delays in receiving these funds often occur. To address this, village and block panchayats are directed to use their own funds to ensure timely payment. Once the central funds are released, the amount will be reimbursed to the respective accounts.

The EPF scheme ensures that employees have a secure savings option, as withdrawals are restricted to specific conditions. However, the amount can be withdrawn in emergency situations. Employees can also withdraw up to 75 percent of their EPF balance after one month of resignation. The remaining amount can be withdrawn after two months of being unemployed.