Kerala’s contract workers face retirement without EPF as deadline nears

Thousands of contract, outsourced and daily-wage workers employed in Kerala government departments and public institutions could benefit from an EPF enrolment provision, but calls are growing for the state government to take steps before the October 31 deadline.

Thousands of contract and daily-wage workers have been working for years in state government departments and institutions, including KSEB, the Kerala Water Authority, KSFE, Devaswom Boards and hospitals.

Many of these workers face retirement without access to social security benefits such as provident fund savings and pension-related support. The issue has renewed demands for government intervention to ensure eligible workers are brought under the EPF system.

Opportunity for eligible workers

Workers who were eligible for EPF coverage but remained outside the scheme during the period from April 1, 2009, to March 31, 2026, have an opportunity to become members under the applicable provision before October 31.

Where the employee contribution was not deducted earlier, it can be waived subject to the prescribed conditions. However, the employer's contribution, applicable interest and administrative charges would still have to be paid.

The Kerala Labour Department had reportedly issued a circular to heads of various departments in 2019 regarding the applicability of EPF provisions to contract workers.

However, workers' representatives say the circular did not result in the required implementation, leaving many eligible workers without EPF coverage despite years of service.

Goa model raises expectations

The issue has gained renewed attention following a notification issued by the Goa government earlier this month.

Goa has reportedly tasked the EPFO and Labour Department with implementing the scheme and made the benefits applicable from April 1, 2009.

Kerala workers and representatives are now seeking similar action from the state government so that eligible contract and outsourced workers can access EPF benefits.

The issue centres on whether workers who have spent years in government departments and institutions through contractual or outsourced arrangements can receive social-security protection comparable to other eligible employees.

The October 31 deadline makes timely action important for workers who fall within the specified eligibility period. The Goa notification has also provided a recent example that Kerala workers are pointing to in their demand for implementation.

Any move by Kerala would need to clarify the categories of workers covered, the applicable service period, employer liabilities and the procedure for settling contributions, interest and administrative charges.