The Employees Provident Fund Organization (EPFO) Universal Account Number (UAN) and the new informal sector workers database are expected to be interoperable to provide a transparent backbone for universal social security coverage in the broader labor market.
“One registry and one UAN should be enough for all workers in the labor ecosystem,” a senior government official said on condition of anonymity.
This will be helpful for the universal social security framework and the smooth transition of enrollment and KYC of workers from the informal to the formal sector.
The union’s labor department, which manages the two wings – EPFO for the formal sector and the informal sector database for the others – is working to integrate the back-end and ensure a smooth transition. and a fluid movement from the formal sector to the informal sector to allow.
“In the EPFO ecosystem, we have already allocated close to 10 million (100 million) UAN. Most of them are active. About 28 million or 280 million unique numbers have been generated and assigned in the informal sector database. The objective is to use them to authorize interoperable numbers”, said the official quoted above.
Another official with knowledge of the development said that an informal sector worker could become a formal sector worker in the next month and that such action would be beneficial rather than duplicating the registration and authentication process.
“If you are registered and completed the Aadhaar authentication, the informal sector database details can be easily shared with the EPFO. KYC is done and there is the UAN and the contribution can be made with the support of the employer”, explained the official.
API integration will do the job, said the first manager. Application Programming Interface (API) integration enables seamless connectivity for multiple departments and organizations to automate business processes and improve data sharing and integration between multiple applications and systems.
The official quoted above said that once the new labor laws are in place and the central or state government wants to introduce new social security systems or introduce DBT, they can use them to transact smoothly.
“The Indian labor market is estimated to be around 470-500 million and already 380 million have UAN through EPFO and the informal sector database. We are working on the details,” said the first official quoted above.
This decision, once implemented, could also allow a smooth transition of temporary and platform workers to the formal social security system in the future.
India has registered at least 7,17,686 self-employed workers, of which almost 58% are from West Bengal, Uttar Pradesh, and Bihar according to official figures.
According to the new social insurance law, the Union government, platform economy countries, and enterprises will jointly set up a fund and establish a social insurance mechanism for platform and concert workers.
Labor Status Code:
India has grouped 29 key labor laws into four codes on wages, social security, occupational health, and labor relations. While Parliament approved the Wage Code in August 2019, the other three were approved in September 2020. But none of them have been put into effect yet.
Labor laws must introduce radical changes that affect both employers and workers. They will offer more flexibility to introduce fixed-term contracts, make hiring and firing more flexible, and make labor strikes more difficult.
The union government is one step closer to enacting the four key labor laws, having incorporated all but four union states and territories, and all have previously published draft rules.
Some of the northeastern states have yet to join and West Bengal has yet to publish the rules for some of the codes, which will have a major impact on a number of segments from wage setting to pay-per-use. Wages, from the national minimum wage floor to temporary employment, easier hiring and firing, and social security for temporary workers.