The Employees' Provident Fund Organization (EPFO) has achieved a milestone in June 2023, as it welcomed a staggering 17.89 lakh new members, according to a statement from the Ministry of Labour. The data further highlights that a total of 3,491 establishments have extended EPFO's social security coverage to their employees by submitting their initial ECR payments during this period.

Comparing the payroll data on a month-on-month (MoM) basis, a significant growth trend in enrolment is evident, with 9.71 percent increase in net members over the previous month of May 2023. Additionally, the ministry notes that this surge has contributed to the highest overall remittance numbers witnessed in the last 11 months, dating back to August 2022.

The data analysis points to a figure of approximately 10.14 lakh fresh members who joined in June 2023, marking the highest influx since August 2022. Notably, the 18-25 age group constitutes a substantial 57.87 percent of the total new members, indicating a positive trend of youth participation in the organized workforce sector. The ministry views this as a reflection of a growing number of first-time job seekers entering the country's workforce.

Payroll data delves into the observation that around 12.65 lakh members re-entered EPFO after switching jobs, choosing to transfer their accumulations instead of opting for final settlement. This strategic move not only showcases their commitment to social security but also contributes to their uninterrupted coverage under EPFO.

Further dissecting the data by gender, it's noteworthy that out of the total 10.14 lakh new members added in June, around 2.81 lakh are female members, marking their first-time entry into EPFO. This statistic underscores a surge in the percentage of female members joining the organized workforce, marking a high point in the past 11 months. The net female member addition for the month reached around 3.93 lakh, a figure last attained in August 2022.

Analyzing the data at a state level, Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Haryana emerge as frontrunners, collectively accounting for 60.40 percent of the overall net member addition. Among these states, Maharashtra leads the pack, contributing a significant 20.54 percent of the total net member addition in the given month.

According to Lohit Bhatia, President at Indian Staffing Federation (ISF), the current EPFO data shows robustness towards formal job creation.

"This data is a reflection of transition of informal to formal employment and typically led by medium and large enterprises in the economy. As the economy has been gradually becoming more formalized than ever before, with GST, and growing investments in core and infra structure sectors the downstream positive affect are visible on sectors like the Telecom, banking & financial, retail, manufacturing and industries and consumer space. Employers too are preferring to add personnel in the formal sector as that enables continuity and skilling to the concerned personnel that aids growth within the job and productivity enhancement as well," he said.

As we reach the stage for the 2023 festive season starting from August onwards up to November this year, Bhatia said that the formal job creation and EPFO backed employment should grow even further and faster in coming months.

(Edited by : Anshul)

First Published:Aug 23, 2023 5:02 PM IST