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Q32 (IAS/2021) Economy › Growth, Development, Poverty & Employment › Labour market regulations Official Key

With reference to casual workers employed in India, consider the following statements : 1. All casual workers are entitled for Employees Provident Fund coverage. 2. All casual workers are entitled for regular working hours and overtime payment. 3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account. Which of the above statements are correct?

Result
Your answer:  ·  Correct: B
Explanation

The correct answer is Option 2 (2 and 3 only). This is based on the following legal frameworks in India:

  • Statement 1 is incorrect: Under the EPF Act, 1952, coverage is not universal for "all" casual workers. It generally applies to establishments with 20 or more employees. Furthermore, workers earning above a certain wage ceiling (currently ₹15,000) may be excluded unless they were already members.
  • Statement 2 is correct: The Minimum Wages Act and the Factories Act provide that any worker, including casual labor, is entitled to fixed working hours. Work performed beyond these hours must be compensated with overtime payment, usually at double the ordinary rate of wages.
  • Statement 3 is correct: According to the Payment of Wages (Amendment) Act, 2017, the appropriate government can notify specific industries or establishments to pay wages exclusively through bank accounts or cheques to ensure transparency and prevent exploitation.

Therefore, while statements 2 and 3 represent statutory rights and powers, the universal claim in statement 1 is legally inaccurate.

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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. With reference to casual workers employed in India, consider the following statements : 1. All casual workers are entitled for Employees …
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 3.3/10 · 6.7/10
You're seeing a guest preview. The Verdict and first statement analysis are open. Login with Google to unlock all tabs.

This question is a classic 'Heuristic Trap'. Aspirants blindly eliminating 'All' (Statements 1 & 2) got slaughtered. The question asks about 'Legal Entitlement' (Theory), not 'Ground Implementation' (Reality). In Indian Law, definitions of 'Employee' are broad and inclusive; therefore, statutory rights often extend to 'All' casual workers, even if enforcement is weak.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Are all casual workers employed in India entitled to Employees' Provident Fund (EPF) coverage under Indian law?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The Code extends social security to all workers- including unorganized, gig, and platform workers-covering life, health, maternity, and provident fund benefits"
Why this source?
  • Explicitly states the Social Security Code expands coverage to "all workers", which would encompass casual workers.
  • Specifically includes provident fund benefits as part of the coverage extended to all workers.
Web source
Presence: 5/5
"Under Code on Social Security, 2020 all workers including gig & platform workers to get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits."
Why this source?
  • Specifies the Code on Social Security, 2020 provides social security coverage to all workers, naming PF (Provident Fund) among benefits.
  • Reinforces that gig and platform workers — categories analogous to casual/unorganized workers — are included.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Employees Provident Fund (EPF) Scheme > p. 267
Strength: 5/5
“• Employees Provident Fund (EPF) is a scheme under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and is regulated under the purview of EPFO. Basically, it is a social security scheme.• If an establishment (factory or service industry) has more than 20 workers then it is mandatory to get registered with EPFO. But all the employees working in such a registered (with EPFO) establishment don't need to subscribe to the EPF scheme. Only those workers whose salary is up to Rs. 15000 need to contributes 12% of his/her basic salary (including dearness allowance) into this scheme and the same amount is also contributed by the employer.”
Why relevant

States the statutory trigger for EPF: establishments with more than 20 workers must register with EPFO, and only employees with salary up to Rs.15,000 contribute to EPF—implying not every worker in every workplace is automatically covered.

How to extend

A student could combine this with the fact that many casual workers earn daily wages or higher/lower pay to infer that some casuals (in small workplaces or above the salary threshold) may be outside mandatory EPF coverage and thus test the statement.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 3. The Code on Social Security, 2020 > p. 263
Strength: 5/5
“Establishments will be allowed to join Employees' Provident Fund Organization (EPFO) and Employees' State Insurance Corporation (ESIC) on voluntary basis even if they have fewer workers (less than 20 in case they use electricity or less than 40 in case they do not use electricity).• EPFOs coverage would be applicable on all establishments having 20 workers. Earlier it was applicable only on establishments included in the relevant Schedule.”
Why relevant

Explains the Code on Social Security rule: EPFO coverage applies to establishments having 20 or more workers and smaller establishments may join voluntarily—showing coverage depends on establishment size.

How to extend

By noting that many casual workers are employed in small establishments or the unorganised sector, a student can suspect that many casuals lack mandatory EPF entitlement and seek confirmation.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > CASUALISATION AND INFORMALISATION OF {f W}ORKFORCE > p. 56
Strength: 4/5
“CASUALISATION AND INFORMALISATION OF \bf W\ WORKFORCE To understand this, let us first define the following: Casual worker versus regular worker - Workers are either self-employed or hired. Hired workers are further categorised as casual workers or regular workers. Casual workers work on daily wages and are not given any social security benefits like provident fund, gratuity or pension. Regular workers are on permanent payroll and are entitled to all social security benefits. Formal worker versus informal worker - As per the National Commission for Enterprises in \bulletthe Unorganised Sector (NCEUS), workers working in the organised sector (which includes government departments, public enterprises and private establishments hiring 10 or more workers) are termed formal workers.”
Why relevant

Defines casual workers as daily-wage employees who are not given social security benefits like provident fund, explicitly linking casual status to typical exclusion from PF.

How to extend

A student could use this definition plus data on the composition of casual employment to judge whether 'all casual workers' would realistically be covered by EPF.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > Challenges or Criticisms > p. 576
Strength: 3/5
“• 1. High attrition rate of workers. • 2. Poor level of loyalty on the part of workers. • 3. Vulnerability of workers in terms of removal from work by employer without any notice, no retirement benefits, poor working conditions, hardly any insurance coverage, etc. • 4. Coordination also possesses as a big challenge and so does building a rapport with the team in case of gig economy. There are no regulations to protect freelancers in India today. The only document for them is the contract they sign, most of which are drawn in the company's favour. Thus, there is a need for proper government interventions to tackle the emerging issues in this rising gig economy in India.”
Why relevant

Notes absence of regulations protecting freelancers and mentions lack of retirement benefits for many workers in gig/informal economy, indicating gaps in social security coverage for non-regular workers.

How to extend

Combine with knowledge that casual workers often work informally or in gig arrangements to infer many may be outside statutory EPF coverage, prompting targeted verification.

Statement analysis

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Statement analysis

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