Udupi Implements Full EPF and ESI for Grama Panchayat Staff

Udupi district has successfully rolled out full implementation of the Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) benefits for grama panchayat (GP) employees, marking a significant milestone in social security for rural administrative staff. This initiative addresses a long-standing demand from employees and positions Udupi as a model for comprehensive social coverage in the region.

Following amendments to the Karnataka Grama Swaraj and Panchayat Raj Rules in 2022, the state government empowered taluk panchayats to serve as implementation units for extending EPF and ESI benefits to approved GP employees. While other districts, such as Dharwad, Bengaluru Rural, and Dakshina Kannada, have only partially implemented these benefits, Udupi’s systematic approach has set a benchmark for the state.

Under the newly established scheme, employees will contribute 12% of their basic pay and dearness allowance towards EPF, matched by an equal contribution from the respective panchayat. For ESI, employees will contribute 0.7%, while panchayats will contribute 3.2%. This dual funding structure ensures that rural staff receive essential benefits, including retirement savings, pension security, medical care, and cash assistance.

Structured Implementation and Training

Prateek Bayal, the CEO of Zilla Panchayat, played a vital role in overseeing the rollout. He confirmed that dedicated bank accounts have been established at taluk panchayats for the executive and accounts officers, with appointed supervisors to ensure proper oversight. Bayal emphasized the importance of education in this process, stating, “District-level workshops were conducted to educate grama panchayat staff and library supervisors about EPF and ESI benefits.” This structured approach has facilitated a smooth execution of the initiative.

The implementation covers 654 staff members and 149 library supervisors across Udupi’s 155 grama panchayats. For the employees who have advocated for these benefits since 2008, this development is being hailed as a landmark achievement. It not only enhances service security but also improves access to healthcare for rural workers.

A Historic Milestone for Rural Employees

Padmanabha R Kulal Mudradi, the state general secretary of the Karnataka Rajya Grama Panchayat Employees’ Welfare Association, described the move as a historic milestone for the district. He praised the local administration for “setting a benchmark for the state” and providing much-needed assurance to rural administrative personnel.

This initiative represents not only a significant improvement in the welfare of grama panchayat employees but also a commitment by the Udupi district to lead in social security coverage. As more districts look to Udupi as a model, the full rollout of EPF and ESI benefits may pave the way for broader implementations across Karnataka, ultimately enhancing the livelihoods of many in the rural workforce.