Ministry of Coal has proposed a new legislation—the Coal Mines Employees’ Provident Fund and Miscellaneous Provisions Bill, 2025—to overhaul the existing social security framework for coal workers.
The bill seeks to replace the 77-year-old Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948.
It also aims to align coal sector social security with contemporary labour standards and digital governance.
A Long-Awaited Legislative Overhaul
The government enacted the Coal Mines Provident Fund Act of 1948 as a pre-constitutional law to support coal workers.
It originally introduced the Provident Fund Scheme, Family Pension Scheme, and Deposit Linked Insurance Scheme.
Over the decades, the Act has been amended multiple times.
However, it has struggled to keep pace with changing labour practices, wage structures, and dispute resolution mechanisms.
Recognizing the need for reform, the Ministry of Coal has initiated a comprehensive review of the Act.
The proposed bill seeks to consolidate and modernize provisions related to industrial dispute resolution, working conditions, wage regulation, social security, and digitalisation.
Key Features of the Draft Bill for Coal Workers
The draft legislation introduces several structural and administrative changes:
- Replacement of the Board of Trustees: The government will replace the existing Board with a new Coal Mines Employees’ Provident Fund Board to ensure greater accountability and transparency in fund management.
- Legal Institutionalization of CMPFO: The Coal Mines Provident Fund Organisation (CMPFO) currently administers the Act. It will be legally institutionalized to bring parity with other social security laws, such as the Employees’ Provident Fund Act, 1952.
- Decriminalization of Penal Provisions: Certain offences under the old Act will be decriminalized, replacing imprisonment with monetary penalties. Adjudicating officers will be appointed to determine and impose these penalties.
- Gender Inclusivity: The bill requires the inclusion of at least one woman in the six-member employee representation team on the Provident Fund Board.
- Timely Realization of Dues: The government has added provisions to ensure prompt recovery of provident fund dues from employers, addressing a long-standing concern among coal workers.
Stakeholder Consultation and Legislative Path
The Ministry has invited public comments on the draft bill until November 7, 2025.
Stakeholders can submit feedback via email or post, and the ministry has provided an explanatory note to facilitate informed responses.
Once the government finalizes the bill, it will table it in Parliament for approval.
If passed, it will repeal the 1948 Act and serve as a consolidated legal framework for coal sector social security.
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