The Ministry of Coal has announced major social protection measures for coal sector workers. Insurance coverage for all employees is raised to ₹1 crore, with no premium burden on workers. For the first time, non-permanent employees are also included under the scheme. Ex-gratia compensation on death has been enhanced from ₹15 lakh to ₹25 lakh, and a Performance Linked Reward (PLR) of ₹1,03,000 is approved for each worker at Coal India Limited (CIL), its subsidiaries, and Singareni Collieries Company Ltd (SCCL). Additionally, a uniform dress code across all ranks aims to reinforce collective identity.
By extending benefits beyond permanent staff and removing premium costs, this initiative signals a stronger labour protection framework in India’s core industries. It attempts to reduce welfare disparities, boosts worker morale, and set a precedent for PSU governance and welfare standards in heavy industry. The move also contributes to India’s commitments under Atmanirbhar Bharat by strengthening the human resource backbone of the coal sector.
What is Performance Linked Reward (PLR)? → A performance-based bonus tied to company or sectoral targets; it matters as it incentivises productivity and fairness in PSU compensation.
What is Ex-gratia? → A voluntary, non-statutory payment offered beyond legal obligations, often in case of fatality or accident, providing critical safety nets for workers’ families.
Relevant Question for Policy Stakeholders:
What risks could emerge if similar social protection frameworks are not extended to other vulnerable sectors like steel, mining, or construction?
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