The Employee Provident Fund Organization (EPFO), responsible for retirement funds, recorded a significant increase in its member base in June 2023. According to an announcement by the labor ministry on Sunday, the EPFO added a total of 1.789 million new members on a net basis during this period.
The data highlights that during this month, a total of 3,491 establishments expanded the coverage of EPFO’s social security to their employees by submitting their initial Electronic Challan cum Return (ECR).
Comparing the month-on-month payroll data, there is a noticeable upward trajectory in enrollment, with a remarkable 9.71% rise in net members compared to May 2023. The overall fund remittance also reflects the highest figures over the past eleven months, dating back to August 2022, as indicated by the labor ministry’s statement.
The statistics for June from the EPFO underscore a rising trend in the participation of young individuals. Approximately 1.014 million new members joined in June 2023, marking the highest count since August 2022. Among these fresh members, a significant 57.87% fall within the age group of 18 to 25 years, pointing towards an escalating inclination among young job seekers to join the formal workforce.
The payroll data also reveals that around 1.265 million members re-registered with EPFO after switching jobs. Rather than opting for final settlements, these members chose to transfer their accumulated funds, effectively extending their social security coverage.
Analyzing the data through a gender lens, out of the total 1.014 million new members added in the month, approximately 281,000 were females joining EPFO for the first time. This marks the highest percentage of new female members entering the organized workforce within the past 11 months. Furthermore, the net addition of female members during the month reached approximately 393,000, also setting a new record since August 2022.
Taking a closer look at state-level data, Maharashtra emerges as the leader in terms of net member addition. Alongside Tamil Nadu, Karnataka, Gujarat, and Haryana, these five states account for around 60.40% of the total net member addition, collectively enrolling 1.08 million members during the month. Among these states, Maharashtra stands at the forefront, contributing to 20.54% of the overall net member increase during the month.
