New Delhi : Retirement fund manager Employees’ Provident Fund Organisation (EPFO) added 13.95 lakh net subscribers during the month of November 2021, showing an increase of around 2.85 lakh net additions over the previous month.
The increase in subscriber number indicates formalisation of economy and increase in economic activities leading to improvement in job market.
Year-on-year comparison of payroll data also shows an increase of around 3.84 lakh in net payroll additions in November, 2021 as compared to 10.11 lakh net subscribers added in same month previous year.
Labour economist and professor at XLRI-Xavier School of Management K.R. Shyam Sundar, however, said that net additions in subscribers also include those who exited and made re-entry, and hence it cannot be entirely taken as indicator of formalisation.
“These are encouraging numbers even as there has been grim scenario in labour market due to persistence of Covid-19. However, these EPFO numbers cannot be taken as complete measure of formalisation because even contract workers would be covered under this scheme,” he said.
“All that what we can say with confidence is that there is a marginal degree of formalisation, to the extent of providing for one of the components of social security. But given the size of unemployment and vastness of the informal workers, these numbers constitute tiny drops,” Sundar said.
As per the provisional data released by Labour Ministry on Thursday, out of the total 13.95 lakh net subscribers added in November, 8.28 lakh new members have come under the social security cover of EPFO for the first time.
“Approximately 5.67 lakh net subscribers exited but rejoined EPFO by changing jobs within the establishments covered under the purview of EPF & MP Act, 1952. The subscribers opted to continue their membership with EPFO by transferring their PF accumulations from previous to present PF account instead of applying for final withdrawal,” the Ministry said.
Age-wise comparison of payroll data shows that the age-group of 22-25 years has registered highest number of net enrolments with 3.64 lakh additions during November, 2021. Age-group of 18-21 also registered a healthy addition of around 2.81 lakh net enrolments.
As much as 60% of EPFO subscribers added in the month of November were engaged by firms and establishments in the states of Maharashtra, Haryana, Gujarat, Tamil Nadu and Karnataka.
Net share of female subscribers during the month was 2.95 lakh.
Industry-wise payroll data indicates that ‘expert services’ category (consisting of manpower agencies, private security agencies and small contractors etc.) constitutes 41.48% of total subscriber addition during November.
Growing trend in net payroll additions has been noted in industries like building and construction industry, textiles, schools, restaurants and cement among others.