Indian Economy News

In September 2023, 17.21 lakh new net members joined EPFO

According to EPFO's provisional payroll data, which was released on November 20, 2023, the Employees’ Provident Fund Organisation (EPFO) added 17.21 lakh net members in September 2023.

Payroll data comparing month-on-month revealed an increase of 21,475 net members over August 2023, the previous month. Payroll data comparing September 2022 to September of the current year showed an increase of 38,262 net members.

According to the report, in September 2023, almost 8.92 lakh new members were enrolled. Among these newly joined members, the age group of 18-25 years constituted 58.92% of the total new members added during the month. This demonstrates that the majority of the members joining the organised sector workforce of the country are youth, who are mostly first-time job seekers.

Furthermore, payroll data indicate that over 11.93 lakh members left EPFO but later rejoined. These members chose to transfer their accumulations rather than seek for final settlement, thereby extending their social security protection, after changing occupations and re-joining the establishments covered by EPFO. 3.64 lakh exits were made in September 2023, a 12.17% reduction over the same month the previous year. Additionally, the data shows that from June 2023, the number of members leaving EPFO has been decreasing.

An analysis of payroll data by gender indicates that, of the 8.92 lakh new members that EPFO gained in the given month, almost 2.26 lakh were female members joining the EPFO for the first time. Additionally, the net addition of female members for the month was approximately 3.30 lakh.

The state-wise analysis of payroll data indicated that the five states of Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Haryana have the highest net member addition rates. These states added 9.88 lakh new members in total during the month, or about 57.42% of the net member addition. Maharashtra is the most advanced state, having added 20.42% of net members in the month.

A comparison of industry-specific data month-over-month shows a notable increase in the number of members employed by companies in travel, iron and steel, sugar, courier, and other industries. About 41.46% of the net membership increase is attributable to expert services (which include typical contractors, security services, labour providers, and other miscellaneous activities).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.