Institutionalizing Social Security In India: A Legal And Policy Analysis Of The EPF & MP Act, 1952
- IJLLR Journal
- Jun 27, 2025
- 1 min read
Nandana S Menon, Law Centre-II, Faculty of Law, University of Delhi
ABSTRACT
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF & MP Act) represents a pivotal step in India’s journey toward institutionalized social security for industrial workers. Rooted in the Directive Principles of State Policy ethos, the Act aims to ensure financial stability and dignity for workers post-employment through a mandatory contributory framework. This paper traces the historical genesis of the EPF & MP Act, beginning with the promulgation of the Employees' Provident Fund Ordinance in 1951 and leading to the development of a comprehensive regulatory regime managed by the Central Board of Trustees under the Ministry of Labour and Employment. It provides an overview of the key schemes under the Act—Provident Fund, Pension Scheme, and Deposit Linked Insurance—and analyses their significance in the broader context of worker welfare.
Special emphasis is placed on the Act’s provision for exemptions under Sections 16 and 17, allowing certain statutory bodies and compliant establishments to formulate their own provident fund mechanisms. Drawing from legal precedents and administrative guidelines, the paper explores the criteria, governance responsibilities, and revocation procedures applicable to exempted entities. Further, the essay critically examines the challenges in extending EPF coverage to contractual and informal sector workers, highlighting systemic issues such as administrative gaps, ambiguous employment relationships, and cost-related employer resistance. The paper underscores the pressing need for reforms to ensure universal, equitable access to social security in India’s evolving labour market.
