EPFO sees more young blood, 55% new enrollments in April under 28
EPFO added 17.9 lakh subscribers in April 2023 as per data, formal job creation in India hit a 4-month high in April
Data released by the Employees Provident Fund Organisation (EPFO) for April threw up some encouraging trends, including the rising number of young professionals in the system. EPFO, which is the fiscal caretaker of social security of the organised and semi-organised workers in India, added 17.9 lakh subscribers in April 2023. As per data, formal job creation in India hit a 4-month high in April.
Out of these new joiners, the maximum share (22%) was of people aged between 22-25, followed by those aged 29-35 years. Only 9,406 people under the age of 18 joined the EPFO ecosystem in April. In the 18-21 age group, 2,98,156 people joined the EPF. Notably, in 2022-23, around 44 lakh people aged between 22-25 subscribed to EPF. People aged 18-28 are usually new beginners in the labor market. Hence, a rise in their numbers is seen as a direct reflection of the strength of India’s labor market.
Under this scheme, an employee contributes 12% of his wages/salary to the EPF account every month. The employer has to match this contribution. But note that only 3.67% of employer’s funds are credited to EPF account. The remaining potion is directed towards EPS, or employee pension scheme. For the year 2022-23, EPFO has mandated an interest rate of 8.15% as returns.
Maharashtra, Karnataka take lead
In terms of state, Maharashtra, Karnataka and Tamil Nadu saw maximum individuals between 18-28 being inducted in the EPF scheme. Nagaland, Ladakh and Mizoram were at the bottom of the table, making only double-digit additions to the system.
There has also been a marginal, yet steady rise in the number of enrolments seen under the EPFO system over the years, in segments aged 28 or less. While 2021-22 saw 91.25 lakh new additions aged between 18-28 years of age, the number swelled to 1.02 crores in the same age group, between 2022-23
Even the number of women enrolled under EPF inched higher, on a monthly basis. In March 2023, women made up 25.1% of total new subscribers, a figure which rose to 26.6% in April, 2023.
April saw highest registrations from the expert services industry, indicating that the organized sector still took massive precedence in terms of awareness and social security contributions over establishments engaged in cleaning, sweeping services, hospitals and more.