Net formal job creation under EPFO up at 1.85 million in August: Payroll data

Job creation: Net formal job creation through the Employees’ Provident Fund Organisation (EPFO) reached 1.85 million in August, marking a 9.07% increase compared to the 1.69 million jobs added in August 2023, according to the most recent government data. Net new subscribers added to EPFO stood at 1.41 million in April, 1.51 million in May and 1.67 million in June this year.

The provisional data, released by the Ministry of Labour and Employment on Sunday, indicates a month-on-month decrease of 7.03% from the record-breaking 1.99 million net formal jobs created in July this year. This July figure was the highest ever addition to EPFO since data computation began in 2018.

The ministry statement said: "As per the data, around 0.93 million new members enrolled during August 2024, which is an increase of 0.48% when compared to August 2023. “This surge in new memberships can be attributed to growing employment opportunities, increased awareness of employee benefits, and EPFO 's successful outreach programs.”

Moreover, 43.5% of the total new members, equivalent to 0.81 million, recruited in August 2024 belonged to the age group of 18-25. This aligns with the prevailing pattern suggesting that the majority of individuals entering the formal job sector are young adults, specifically those seeking employment for the first time.

The data shows that in August, there were 0.37 million new female members added to EPFO, which was 10.4% higher than the same month in 2023. Additionally, 0.25 million new female members were added during the month.

“The surge in female member additions is indicative of a broader shift towards a more inclusive and diverse workforce,” the ministry said.

The payroll data indicates that around 1.35 million members left and then rejoined EPFO, showing a year-over-year increase of 14.03% compared to August 2023. These members changed jobs and returned to establishments covered by EPFO, choosing to transfer their savings instead of requesting a final settlement. This decision helps to protect their long-term financial well-being and enhance their social security coverage.

In August 2024, Maharashtra, Karnataka, Tamil Nadu, Haryana, and Gujarat collectively saw a significant increase in net member additions, accounting for 59.1% of the total. Maharashtra alone contributed 20.1% of the total net members during this period.

According to the ministry, a comparison of industry-wise data on a monthly basis indicates notable growth in membership in various sectors such as trading - commercial establishments, engineers - engineering contractors, building and construction industry, agriculture farms, and beedi making.

EPFO has started to publish payroll data beginning from April 2018, encompassing the timeframe of September 2017 onwards.

The monthly payroll data includes the number of new members joining EPFO through Aadhaar-validated UAN for the first time, existing members withdrawing from EPFO coverage, and those who had exited but later rejoined as members. This data helps in calculating the net monthly payroll.