Money & Banking

Net addition to EPFO during September at 15 lakh

Our Bureau. New Delhi November 20 | Updated on November 20, 2020 Published on November 20, 2020

The EPFO manages social security funds of workers in the organised/ semi-organised sector and has more than six crore active members.   -  The Hindu

The Labour Ministry, on Friday, said that net addition of subscribers in the Employees Provident Fund scheme in September reached 14.9 lakh, which is 49 per cent higher than corresponding period of last fiscal. With this, the total subscriber base during the first six months touched 30.92 lakh.

The data published comprises members who joined during the month and whose contribution has been received. The net payroll addition figure for the second quarter of FY21 is 30.34 lakh, which is approximately equal to payroll figures of second quarter of FY20. This indicates a robust recovery to pre Covid-19 levels, said a Labour Ministry statement.

The number of memberswho exited and then rejoined indicates both switching of jobs by them within the establishments covered under EPF scheme and subscribers choosing to retain their membership by transferring their PF accumulations rather than opting for final withdrawal. In terms of month-on-month comparison, this has increased by approximately 10 per cent from 6.53 lakh in August to 7.23 lakh in September 2020.

Age-wise analysis indicates that during September 2020 the maximum number of new additions belong to more than 35 years age-bracket, followed by 18-21 and 22-25 age-brackets, respectively. The age group of more than 35 years registered a remarkable growth in net additions from around 1.24 lakh in August to 3.90 lakh in September 2020. Growth in this age bracket indicates return of jobs to already experienced workers. The 18-25 age-group members can be considered as fresh hands in the job market, and have also shown strong revival by contributing almost 42 per cent of the new subscribers.

Across State comparison of payroll figures shows Maharashtra, Haryana, Gujarat, Tamil Nadu, and Karnataka remaining at the forefront of the employment recovery cycle by adding approximately 54 per cent of the total of 30.34 lakh net payroll addition for the second quarter of FY 21 across all the age groups.

Category-wise analysis of industry indicates that ‘expert services’ category has continued its recovery, adding 47 per cent of the net payroll during the second quarter. However, some of the other industries such as building and construction with 1.62 lakh additions; engineers and engineering contractors with 1.57 lakh additions; and electrical, mechanical and general engineering products with 1.51 lakh additions respectively during the second quarter have shown that the recovery has started picking up in other sectors as well.

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Published on November 20, 2020
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