The coal ministry along with Coal India and Singareni Collieries have decided to bring 70,000-odd coal contract workers under the ambit of the Coal Mines Provident Fund Organisation (CMPFO). Coal India executives said bringing contract workers under CMPFO will offer them social security and give them higher returns apart from helping the fund itself, which is facing an asset-liability mismatch.
CMPFO is an organisation meant for coal workers and its operation is similar to the Employees Provident Fund Organisation (EPFO). Members of the fund contribute a monthly amount, which is matched by their employer.
Bulk of this fund along with interest and bonus is returned to the employees after he/she retires. A portion of this fund goes into the pension fund, which is used to provide a steady pension.
This comes close on the heels of Coal India raising wages for contract workers engaged in mining activities by 50 per cent. Read More
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