Social Policy Interventions during COVID-19: EPFO's Role in Financial Resilience and Digital Transformation in India

Abstract

The COVID-19 pandemic triggered a worldwide liquidity crisis, deeply affecting both employers and employees. To address this, India's Ministry of Labour and Employment, through the Employee Provident Fund Organisation (EPFO), has launched several schemes to alleviate financial hardships. This research assesses the effectiveness of EPFO's pandemic measures and their influence on financial stability, with a focus on grievance redressal, claim processing, communication, and digital adoption. Data were gathered from 34 Administrative Managers across small, medium, and large firms. A structured online questionnaire was distributed, and tests for validity and reliability ensured the robustness of the data. Chi-square analysis examined the links between digital platforms and employer satisfaction, as well as grievance resolution and claim processing times. A factor analysis of 24 items uncovered core relationships among the variables. Results showed significant links between grievance redressal and claim settlement (χ² = 18.516, df = 9, p < 0.05), employer communication and digital platforms (χ² = 11.453, df = 4, p < 0.05), and government contributions during COVID-19 and employer satisfaction (χ² = 21.587, df = 12, p < 0.05). The study also found a link between government support to employers and employees' net salaries, with a reduction in statutory rates (χ² (16) = 36.090, p < 0.05). Furthermore, Pearson correlation analysis validated relationships involving employee sustenance (.381*, p < 0.05), employer perspectives (.625**, p < 0.01), and EPFO's digital efforts (.359*, p < 0.05). Overall, these strategic actions underscore the EPFO’s pivotal role in mitigating the pandemic’s financial impact through digital advancements and enhanced operational efficiency.