In June 2024, the Employees’ Provident Fund Organisation (EPFO) witnessed a net addition of 19.29 lakh members, reflecting the continued expansion of India’s formal employment sector. This growth represents a 7.86 percent increase in net member additions compared to the same month in 2023, underscoring the robustness of the country’s labour market.
The notable rise in EPFO membership can be attributed to several critical factors. Foremost among these is the increase in employment opportunities across various sectors, driven by India’s strong economic performance. Additionally, there has been a growing awareness among employees regarding the benefits of formal employment, particularly towards social security and retirement savings.
In June 2024, approximately 10.25 lakh new members were enrolled in the EPFO. This marks a month-over-month increase of 4.08 percent compared to May 2024, and a modest 1.05 percent year-over-year growth compared to June 2023. An interesting observation is the demographic composition of these new members, with the 18-25 age group comprising a substantial 59.14 percent of the total. This indicates that the majority of new entrants into the organised workforce are young, first-time job seekers, highlighting the ongoing formalisation of employment among India’s youth.
The payroll data further reveals that approximately 14.15 lakh members exited and rejoined the EPFO during June 2024, reflecting a year-over-year increase of 11.79 percent. This data indicates a dynamic labour market with frequent job transitions, with employees moving between different organizations while retaining their EPFO membership.
A gender-wise analysis of the payroll data shows that out of the new members added during June 2024, around 2,98,000 were female, marking a 5.88 percent year-over-year increase. Additionally, the net addition of female members stood at approximately 4,28,000, representing an 8.91 percent year-over-year growth. This surge in female membership is indicative of the increasing participation of women in the formal economy.
The state-wise analysis of payroll data highlights that the net member addition was concentrated in five states and Union Territories: Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Haryana. These regions collectively accounted for 61.16 percent of the total net member additions, with Maharashtra alone contributing 21.09 percent. The dominance of these states in membership growth can be attributed to their industrialized economies and the presence of numerous large-scale employers, which continue to drive employment and economic development.
A month-on-month comparison of industry-wise data reveals substantial growth in EPFO memberships among establishments engaged in education (universities, colleges, schools), finance (financing establishments, general insurance), and expert services (manpower suppliers, contractors, security services). Notably, 40.7 percent of the total net membership additions came from expert services, emphasizing the critical role of these sectors in driving employment.
Cover Photo: www.freepik.com
