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EPFO records 10.58 lakh fresh additions in July

The provisional payroll data highlights that EPFO has added 18.23 lakh net members in July 2022. However, the year-on-year comparison of payroll data reflects an increase of 24.48 percent in net membership addition.

September 21, 2022 / 05:53 PM IST
Gender-wise analysis of the payroll data indicates that net enrolment of female members was 4.06 lakh in July 2022. (Representative Image)

Gender-wise analysis of the payroll data indicates that net enrolment of female members was 4.06 lakh in July 2022. (Representative Image)

July saw over 10.58 lakh new subscribers, payroll data from the Employees’ Provident Fund Organisation (EPFO) released on September 20 showed. However, the numbers are lower than what was recorded in the previous month.

June saw more than 11.07 lakh new EPF subscribers, almost 50,000 more than the July addition, while May saw over 10.21 lakh additions. The age group of 18-21 was the highest contributor with over 3.20 lakh new members in July, followed by the 22-25 age group with more than 2.89 lakh.

The provisional payroll data highlights that the EPFO added 18.23 lakh net members in July 2022. A year-on-year comparison of payroll data reflects an increase of 24.48 percent in net membership additions in July compared to the corresponding month of 2021, the body said in a statement.

“What is heartening to note is that over 57 percent of those finding jobs are youth under 25 years of age. This indicates that first-time job seekers are joining the organised sector in large numbers and there is high demand for entry- and mid-level jobs,” Mahesh Bhatt, chief business officer of staffing firm TeamLease Services, told Moneycontrol.

Of the total 18.23 lakh people estimated to have joined the workforce in July, the 10.58 lakh new entrants to the EPFO fold have come under the social security cover of the body that promotes retirement savings for the first time. Enrolments with the EPFO have shown a growing trend since April 2022, the statement added.

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“The IT sector has hired lakhs of freshers recently. Further, in the post-pandemic world, employees who had given much preference to in-hand salary have realised that the long-term benefits of PF as a forced measure of savings in the long run are equally important,” said Daya Prakash, founder of staffing firm TalentOnLease.

As per official data, there was a drastic decrease in the number of members exiting the EPFO at 4.07 lakh in July. This number was around 7.79 lakh in June.

Further, 11.72 lakh members exited and re-joined in July. These people have chosen to retain their membership through the transfer of funds rather than opting for a final settlement, as per the EPFO.

Membership of women in the organised workforce increases

Gender-wise analysis of the payroll data indicates that net enrolment of female members was 4.06 lakh in July 2022. A year-on-year comparison of enrolment data shows that new membership of women in the organised workforce increased by 34.84 percent in July 2022 compared with July 2021, the EPFO statement said.

“Among the total new members joining EPFO during the month, enrolment of female workforce is recorded as 27.54 percent, which is the highest in the last 12 months. This indicates that female participation is rising in the organised workforce concerning new members joining EPFO,” the statement added.

According to TeamLease Services’ Bhatt, increasing female participation is due to higher education levels, government initiatives and increasing awareness among women. “Also, India Inc is striving hard to narrow the gender gap and become more inclusive,” Bhatt said.

State-wise payroll figures

The EPFO said the state-wise payroll figures highlight that a month-on-month growing trend in net member addition was seen in Tamil Nadu, Delhi, Telangana, Andhra Pradesh and Madhya Pradesh.

In July, Maharashtra, Karnataka, Tamil Nadu, Haryana, Gujarat and Delhi saw a net addition of about 12.46 lakh members, 68.36 percent of the total net payroll additions across all age groups

“The classification of industry-wise payroll data indicates that mainly two categories, i.e., ‘expert services’ (consisting manpower agencies, private security agencies and small contractors, etc.) and ‘trading-commercial establishments’ constitute 46.20 percent of total member addition during the month,” the retirement fund said.
Abhishek Sahu covers HR and Careers at Moneycontrol.
first published: Sep 21, 2022 05:53 pm
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