Net EPFO subscriber additions show growing trend in April-August despite Covid-19

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The net EPFO subscriber additions witnessed a growing trend in the April-August period which was marked by the devastating second wave of the Covid-19 pandemic. According to the payroll data of Employees Provident Fund Organisation (EPFO), 14.81 lakh net subscribers were added in August this year. This is an increase of 12.61% compared to July when the net subscriber addition stood at a little over 13.15 lakh.

The data reflects a growing trend in net payroll for the first five months of the current financial year (April-March), the Labour Ministry said in a release.

Covid impact on subscribers

Interestingly, economic and business activities across the country had come to grinding halt in April and May as the devastating second wave had hit the country. According to the payroll data of the ministry, April saw a net subscriber addition of 8,39,215 which plunged to 5,99,769 in the next month in May.

In the subsequent months, the number of net EPFO subscribers has steadily and sharply increased. In June it nearly doubled to 10,19,603 and the number went by nearly 3 lakh in July at 13,15,036 (See accompanying table).

Of the 14.81 lakh net subscribers in August, around 9.19 lakh new members who joined the EPFO in August were new, whereas approximately 5.62 lakh net subscribers left the EPFO and then returned.

Age-wise break-up

The data say the 22-25 age group has the most net enrolments, with roughly 4.03 lakh additions, followed by the 18-21 age group with around 3.25 lakh net enrolments.

This suggests that a substantial number of first-time job searchers are joining the organised sector employment, accounting for 49.18% of total net subscriber additions in August 2021, the release said.

State-wise comparison

Maharashtra, Haryana, Gujarat, Tamil Nadu and Karnataka together added approximately 8.95 lakh subscribers in August, which is around 60.45% of total net payroll addition across all age groups.

Gender-wise analysis

A gender-wise study says that the share of female enrolment is about 20% of the total net subscriber addition in August. The net addition of female subscribers rose by about 10.18% as compared to July figures. This is largely due to lower female member exits during the month, the labour ministry said.

Industry-wise

 ‘Expert services’ category (consisting of manpower agencies, private security agencies and small contractors, etc.) constitutes 39.91% of total subscriber addition in August. “Apart from this, growing trend in net payroll additions has been noted in industries like trading-commercial establishments, engineering products, building & construction, textiles, garment making, hospitals and financing establishments, the release by the Labour Ministry said.

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