Govt Proposes Major Social Security, Pension Benefits for Coal Workers

The Ministry of Coal has circulated a draft bill that seeks to provide updated social security and pension benefits to coal workers. Reports suggest that if passed, the proposed law will replace the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948.

Need for Change

The 1948 Act, a pre-constitution law, has been amended multiple times but is now considered outdated. The ministry noted that a review is needed to align the framework with current conditions, including wage regulation, industrial dispute settlement, working conditions, and the use of digital systems.

The draft, named the “Coal Mines Employees’ Provident Fund and Miscellaneous Provisions Bill, 2025”, has been opened for comments. The ministry has invited stakeholders to send their inputs before the bill is finalised for Parliament.

Proposed Structure

One of the changes in the draft bill is the plan to replace the existing Board of Trustees with the Coal Mines Employees’ Provident Fund Board. This will serve as the authority to manage provident fund and pension matters under the new framework.

Role of the Old Act

The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, created schemes such as the Provident Fund Scheme, Family Pension Scheme, and Deposit Linked Insurance Scheme for coal workers. These were administered through the Coal Mines Provident Fund Organisation under the coal ministry.

The Centre is currently reviewing pre-constitutional laws to decide whether they remain relevant. As part of this process, it has considered repealing, re-enacting, or consolidating older Acts into updated laws that address the same subject.

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Conclusion

The draft bill is the first step toward overhauling the legal framework governing social security for coal workers. The next stage will involve assessing the feedback received before the legislation is placed in Parliament for approval.

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