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?
- (a) 1 and 2 only
- (b) 2 and 3 only ✓ UPSC's answer
- (c) 1 and 3 only
- (d) 1, 2 and 3
Why the answer is (b)
• Statement 1 is wrong: not all casual workers get Employees' Provident Fund cover. The EPF Act applies only to notified establishments with 20 or more employees, so casual workers in smaller or uncovered units are left out.
• Statement 2 is correct: labour law (the Factories Act, the Minimum Wages rules and now the Occupational Safety, Health and Working Conditions Code, 2020) fixes normal working hours and overtime pay for every worker, whatever the form of engagement.
• Statement 3 is correct: Section 6 of the Payment of Wages Act (amended 2017), now carried into the Code on Wages, 2019, lets the Government notify establishments that must pay wages only by cheque or into the worker's bank account.
• Hence 2 and 3 only, option (b) — the official UPSC answer.
Why the other options are wrong
- (a) 1 and 2 only
- Statement 1 is wrong: EPF covers only notified establishments with 20+ employees, not all casual workers; and statement 3 is correct.
- (c) 1 and 3 only
- Statement 1 is wrong (EPF does not cover all casual workers) and statement 2 is correct.
- (d) 1, 2 and 3
- Statement 1 is wrong: not all casual workers are entitled to EPF coverage.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2021, held on 10 October 2021. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.