In a recent revelation from the Employee Provident Fund Organization (EPFO), July 2023 has proven to be an extraordinary month. The EPFO, India’s premier social security institution, added a staggering 18.75 lakh new members to its roster, marking the highest monthly increase since the inception of EPFO payroll data publication in April 2018, which covers data from September 2017 onwards.
This remarkable trend has persisted for the past three months, witnessing a consistent rise of approximately 85,932 new members compared to the previous month of June 2023.
Delving deeper into the data, an astonishing 10.27 lakh individuals embraced EPFO membership in July 2023, the highest influx since July 2022. Notably, a significant 58.45% of these new members fall within the age group of 18 to 25 years, signifying a growing trend of young, first-time job seekers entering India’s organized workforce.
The payroll data also reveals a captivating twist: approximately 12.72 lakh members chose to exit and then rejoin EPFO, marking the highest such occurrence in the past year. These members, who transitioned between jobs, opted to transfer their EPFO accumulations instead of applying for final settlements, thereby extending their social security protection.
A gender-wise analysis of the payroll data shines a spotlight on an encouraging development, as approximately 3.86 lakh new female members were added to the EPFO payroll in July 2023. Among these, 2.75 lakh female members received social security coverage for the first time, highlighting the organization’s commitment to gender inclusion.
Geographically, the payroll data unveils that five states—Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Haryana—led the charge, contributing to a remarkable 58.78% of the total net member addition in July, totalling 11.02 lakh new members. Maharashtra, in particular, took the lead by adding an impressive 20.45% of the net members for the month.
A month-on-month comparison across industries paints a dynamic picture of growth. Industries such as Trading-Commercial Establishments, Building & Construction, Electrical and Mechanical Engineering, and General Engineering Products witnessed significant increases in their workforce. These were closely followed by the Textile, Financing, and Hospital sectors. Of the total net membership growth, a substantial 38.40% originated from expert services, encompassing manpower suppliers, contractors, security services, and miscellaneous activities.
It’s important to note that the provided payroll data is provisional, as EPFO continuously updates employee records. Since April 2018, EPFO has been releasing monthly payroll data, taking into account new members joining through Aadhaar-validated Universal Account Numbers (UAN), existing members exiting, and those rejoining, to arrive at the net monthly payroll figure.
The latest EPFO payroll report not only reflects the evolving dynamics of India’s organized workforce but also serves as a testament to the organization’s commitment to fostering social security and inclusive growth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.