EPFO registers 0.88 million new members in May

New members to the Employees Provident Fund Organisation saw a marginal dip in May 2023 at 0.88 million as against 0.89 million in the previous month. However, the number of new entrants to the EPFO has picked up pace in recent months after a drop in the latter part of the fiscal 2022-23.

The EPFO payroll data is considered a high frequency measure for formal sector job creation in the economy. New entrants to the EPFO had been above the 1 million mark in months in the first half of the fiscal 2022-23. The data is, however, provisional and may be revised later.  

According to the provisional payroll data, in all 1.63 million net members were added to the EPFO in May 2023. Of this, around 1.14 million members exited but rejoined the EPFO. This could have been as they may have switched their jobs and re-joined the establishments covered under EPFO and opted to transfer their accumulations instead of applying for final settlement.

In the month of May, 3,673 establishments also extended social security cover of EPFO to their employees by remitting their first Electronic Challan cum Receipt during the month.

“Among the newly joined members, the age-group of 18-25 years constitutes 56.42% of total new members added during the month. This indicates an increasing trend in youth employment, who are mostly first-time job seekers joining organised sector workforce of the country,” said an official release by the Ministry of Labour and Employment on Thursday.  

Gender-wise analysis of payroll data shows that out of the new members added in May, around 0.22 million are new female members, joining EPFO for the first time. Also, the net female member addition stood at around 0.31 million.

State-wise analysis of payroll data highlights that in terms of net member addition, the top five states are Maharashtra, Tamil Nadu, Karnataka, Haryana and Gujarat. These constitute around 57.85% of net member addition, adding a total of 0.94 million members during the month. Of all the states, Maharashtra led by adding 19.32% of net members during the month.