UPSC Prelims 2021 Q2: Indian Economy – Human Development, Poverty & Employment Schemes
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (b) 2 and 3 only
Explanation
Casual Workers in India: Rights and Coverage
| Statement | Claim | Verdict | Detail |
|---|---|---|---|
| 1 | All casual workers are entitled to EPF coverage | FALSE | The Employees Provident Fund Act, 1952 applies to establishments with 20 or more employees in scheduled industries. Casual workers below wage thresholds or in unorganised sectors are not automatically covered. |
| 2 | All casual workers are entitled to regular working hours and overtime pay | FALSE | The Factories Act, 1948 and the new Occupational Safety, Health and Working Conditions Code, 2020 apply to factories and specific establishments, not universally to every casual worker. Domestic workers, agricultural labour and unorganised casual workers are largely excluded. |
| 3 | Government can notify wages to be paid only through bank accounts | TRUE | Under the Payment of Wages Act, 1936 (as amended in 2017) and the Code on Wages, 2019, the appropriate government can specify by notification that wages be paid via cheque or credited to the bank account. |
Only statement 3 is correct.
Answer: (b) 2 and 3 only.
Why each option is right or wrong
- (a) Incorrect. Neither statement 1 nor 2 covers ALL casual workers. Coverage depends on establishment size and sector.
- (b) CORRECT. Only statement 3 is correct - the government can notify bank-account-only wage payment under the Payment of Wages Act (2017 amendment) and Code on Wages, 2019.
- (c) Incorrect. Statement 1 is wrong - EPF requires 20+ employees threshold.
- (d) Incorrect. Both statements 1 and 2 use the word ALL, which is factually wrong.
Key point
All casual workers NOT covered by EPF or working-hour laws. EPF Act needs 20+ employees. Government CAN notify wages via bank account only under Code on Wages 2019 / Payment of Wages Act 2017 amendment. Only statement 3 correct.
Remember
Not all casual workers are covered by EPF (needs 20+ employees) or working-hour laws (Factories Act, sectoral). The government CAN notify bank-only wage payment under the Payment of Wages Act, 1936 as amended in 2017 and the Code on Wages, 2019. Only statement 3 is correct.
Common mistakes
- Assuming labour laws cover ALL workers uniformly. Most laws have threshold conditions (20 or more workers) and sector exemptions.
- Confusing informal sector workers with formal sector workers. India has ~90% workforce in the unorganised sector without full labour protections.
- Missing that the 2017 amendment to the Payment of Wages Act allowed digital wage payment - relevant for financial inclusion and Direct Benefit Transfer.
Exam tip
When you see the word ALL in a statement, be suspicious. Most Indian labour laws have thresholds (10, 20, 100 workers) and sectoral applicability. UPSC often traps candidates using absolute terms.
Sources
- Employees Provident Funds and Miscellaneous Provisions Act, 1952
- Payment of Wages Act, 1936 (as amended); Code on Wages, 2019