The Employees' Provident Fund Organisation (EPFO) is a pivotal government agency in India, tasked with overseeing the social security funds for employees working in the organized sector. It manages the Employees' Provident Fund (EPF), a retirement savings scheme aimed at ensuring financial stability for workers post-retirement.
Established under the EPF and Miscellaneous Provisions Act of 1952, the Employees' Provident Fund (EPF) serves as a vital savings scheme. This initiative is designed to provide financial security to employees after they retire. Contributions to the EPF are made by both employees and employers, based on a percentage of the employee's salary, fostering a culture of savings and security for the workforce.
Recent data released by the EPFO reveals a significant trend: the creation of new formal jobs has risen for the third consecutive month, achieving a nine-month high in June. This uptick suggests a steady recovery in the labor markets during the initial quarter of FY24, indicating positive economic momentum.
In June, the number of new monthly EPF subscribers surged by nearly 10%, reaching 10.14 million, up from 927,703 in May. This figure mirrors the 10.15 million new subscribers recorded in September 2022, highlighting a consistent influx of individuals into the provident fund system.
A noteworthy observation is the increasing participation of young subscribers aged 18 to 28, whose numbers rose to 67.8%, totaling 687,823 in June. This is an increase from 66.5% at 616,783 in May, reflecting that many young individuals are entering the labor market for the first time, which is crucial for economic growth.
The data also highlights a positive shift in women's employment, with their share in new jobs increasing to 27.7% (281,078) in June, compared to 24.9% (231,187) in the previous month. This growth signifies a gradual enhancement in gender representation within the workforce.
Net payroll addition reflects the balance of new subscribers, exits, and the return of former subscribers. In June, this figure witnessed a remarkable increase of 28.9%, totaling 1.78 million, compared to 1.38 million in May. This increase underscores a robust trend in job creation and retention.
According to state-wise analysis from the labor ministry, the highest net member additions were observed in Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Haryana. These five states accounted for approximately 60.40% of the overall net member addition, contributing a total of 10.80 lakh members during the month.
Kutos : AI Assistant!
