scorecardresearch

EPFO net subscriber addition grows 14% to 12.76 lakh in April

The number of exits in April declined by 87,821, while rejoining increased by 92,864 subscribers as compared to March 2021.

Around 6.89 lakh new members came into the social security coverage of EPFO for the first time in April. Around 6.89 lakh new members came into the social security coverage of EPFO for the first time in April.

The net new additions by retirement body Employees' Provident Fund Organisation (EPFO) grew 13.73 per cent on month to 12.37 lakh net subscribers in April, as per the provisional payroll data which gives an idea about the formal sector employment in the country.

The data released by the Labour Ministry provides a perspective on formal sector employment amid the coronavirus pandemic. During 2020-21, EPFO added 77.08 lakh new members as against 78.58 lakh in the year-ago period.

"Despite the second wave of COVID-19 pandemic, April 2021 registered an increase of 13.73 per cent net subscribers addition as compared to the previous month during which around 11.22 lakh net subscribers were added to the payroll," the Labour Ministry said in a release.

The number of exits in April declined by 87,821, while rejoining increased by 92,864 subscribers as compared to March 2021.

According to EPFO payroll data released in May this year, net new enrolments in April 2020 were in the negative zone at (-) 2,84,576. This means that the number of members exiting the EPFO subscription were higher than those who joined or rejoined the scheme. This happened mainly due to the impact of nationwide lockdown imposed by the government from March 25, 2020, to contain the spread of COVID-19.

Of the 12.76 lakh net subscribers added during April 2021, around 6.89 lakh new members came into the social security coverage of EPFO for the first time, while around 5.86 lakh subscribers exited and then rejoined EPFO by changing their jobs within the establishments covered by EPFO and choosing to retain membership through transfer of funds rather than opting for final settlement.

Also read: M-cap of 4 of top-10 valued firms jump over Rs 68,000 cr; HUL, Infosys lead gainers

The 22-25 age group registered the highest number of net enrolments with around 3.27 lakh additions during the month, followed by 29-35 age group with around 2.72 lakh net enrolments.

Maharashtra, Haryana, Gujarat, Tamil Nadu and Karnataka had the highest net payroll addition, with the five states contributing 59.41 per cent of the total additions across all the age-groups by adding 7.58 lakh net subscribers during April.

"Industry-wise payroll data indicates that 'expert services' category (consisting of manpower agencies, private security agencies and small contractors etc.) constitutes 45 per cent of total subscribers addition during the month," the release said.

Besides, industries involved in making plastic products, beedi, schools, banks and establishments related to iron and steel sectors also registered above average growth in terms of net addition of subscribers during April 2021 as compared to the previous month of March 2021.

Since April, 2018 EPFO has been releasing payroll data covering the period September 2017 onwards. The data published comprises of members who have joined during the month and whose contribution has been received.

The EPFO manages social security funds of workers in the organised/semi-organised sector in India.

Also read: Govt open to taking additional measures to boost economy, says CEA Subramanian