EPFO gross new members addition dips to 10.24 mn in June 2024: Mospi

Retirement fund body EPFO's latest data stated that the gross new subscribers addition declined by over 7,000 to 10,24,851 which was 10,31,982 during the month of May 2024. 

According to the report 'Payroll Reporting in India: An Employment Perspective June 2024', the Employees' Provident Fund Organisation (EPFO) recorded 1,09,93,119 gross addition of new members in 2023-24 compared to 11,498,453 in 2022-23.

In June 2024, the net formal job creation under the Employees' Provident Fund Organisation (EPFO) surged to 1.92 million, attributed to the augmented employment opportunities, enhanced awareness of employee benefits, and effective outreach initiatives by the EPFO, as per the Ministry of Labour and Employment.

The latest payroll data release from the ministry showcased a 7.86% year-on-year escalation in net new subscriber additions, with 1.78 million net new subscribers recorded in June 2023. Furthermore, the data emphasized a significant uptick in female membership, signaling a positive shift towards gender inclusivity and diversity in the workforce.

A gender-wise analysis of the data indicates that in June, approximately 298,000 of the new members were female. This accounts for a 5.88% year-on-year increase compared to June 2023. Furthermore, the net addition of female members in June 2024 witnessed an 8.9% rise from June 2023, totaling around 428,000. These findings suggest a progressive shift towards fostering a more inclusive and diverse workforce.

The provisional payroll data is subject to change as employee records are continuously being updated. The Employees’ Provident Fund Organization (EPFO) began publishing payroll data in April 2018, which includes information from September 2017 onwards. This monthly payroll data includes new members who have enrolled with EPFO using Aadhaar-validated Universal Account Numbers (UAN), along with existing members who may have left and returned, in order to determine the overall net monthly payroll figure.

The Mospi report showed that the pandemic adversely impacted the increase in new member enrollments, dropping from 11,040,683 in the financial year 2019-20 to 8,548,898 in 2020-21.

Subsequently, there was a notable recovery as it rebounded to 10,865,063 in 2021-22. However, analysis of data spanning the last five fiscal years up to 2023-24 reveals that the Employee Provident Fund Organization's (EPFO) total new member additions have yet to reach the pre-COVID levels of 2018-19. Specifically, the number of new member additions reached a peak of 13,944,349 in 2018-19.