The government on Saturday said that the Employees Provident Fund (EPF) scheme added 19.5 lakh net members in May. This is the highest monthly addition since the first payroll data was issued in April 2018.
“The year-over-year analysis shows a growth of 19.62 per cent in net member additions compared to May 2023. This surge in membership can be attributed to numerous factors, including increased employment opportunities, a growing awareness of employee benefits, and the effectiveness of EPFO’s outreach programs,” the statement said. The net addition in EPFO subscriptions indicates the extent of formalisation of the job market and the coverage of social security benefits to the organised/ semi-organised sector workforce.
EPF is a mandatory savings scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed under the aegis of Employees’ Provident Fund Organization (EPFO). It covers every establishment where 20 or more persons are employed (and certain other establishments which may be notified by the Central Government even if they employ less than 20 persons each), subject to certain conditions and exemptions as provided in the Act. The pay ceiling is Rs.15000 per month. The number of members subscribing to this scheme gives an idea of the level of employment in the formal sector.
The data indicates that around 9.85 lakh new members enrolled during May, which is around 11 per cent as compared to April and around 11.5 per cent higher than May last year. Among the new joinees, over 58 per cent are in the age group of 18 to 25 years..
The payroll data highlights that approximately 14.09 lakh members exited and subsequently re-joined EPFO. These members switched their jobs and re-joined the establishments covered under the ambit of EPFO and opted to transfer their accumulations instead of applying for final settlement thus, safeguarding long-term financial well-being and extending their social security protection, the statement added.
Gender-wise analysis of payroll data unveils that out of the new members added during the month, around 2.48 lakh are new female members. “The surge in female member additions is indicative of a broader shift towards a more inclusive and diverse workforce,” the statement said.
State-wise analysis of payroll data denotes that net member addition is highest in the five states/ UTs of Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Haryana. These states constitute around 58.24 per cent of net member addition, adding a total of 11.36 lakh net members during the month. Of all the states, Maharashtra is leading by adding 18.87 per cent of net members during the month.