EPFO Sees 18.53 Lakh New Members in August 2024

October 21, 2024

The Employees’ Provident Fund Organisation (EPFO) reported an important growth in its subscriber base. In August 2024 alone, there was a net addition of 18.53 lakh members. This reflects a 9.07% increase compared to August 2023. The Union Labour Ministry attributes this growth to improved employment opportunities and increased awareness of employee benefits.

Subscriber Growth Overview

The EPFO’s payroll data indicates a positive trend in new memberships. In August 2024, 9.30 lakh new members joined, marking a 0.48% rise from the previous year. The Ministry brought into light that the surge is linked to outreach programmes and a growing understanding of the benefits provided by EPFO.

Demographics of New Members

A notable aspect of the new memberships is the age distribution. Workers aged 18 to 25 years account for 59.26% of the new members. This trend suggests that the majority of individuals entering the organised workforce are young, particularly first-time job seekers. The net addition of members in this age group for August 2024 was 8.06 lakh.

Re-joining Members

In addition to new memberships, approximately 13.54 lakh members exited and then re-joined EPFO in August 2024. This represents a year-over-year increase of 14.03% compared to August 2023. Many of these individuals switched jobs and opted to transfer their EPF accumulations rather than settle their accounts. This choice reflects a desire to maintain long-term financial security and social protection.

Gender Representation

Gender diversity within the EPFO membership is also noteworthy. Of the new members, around 2.53 lakh were women, contributing to a net female member addition of approximately 3.79 lakh in August. This increase signifies a shift towards a more inclusive workforce, denoting the growing participation of women in the organised sector.

Regional Contributions

Maharashtra stands out as the leading state in terms of net member additions, contributing 20.59% of the total in August. Other states and Union Territories, such as Karnataka, Tamil Nadu, Haryana, Delhi, Gujarat, Telangana, and Uttar Pradesh, also played roles, each adding over 5% of the total net members.

Implications of Growth

The growth in EPFO memberships marks a robust job market and a shift in workforce demographics. Increased enrolment among youth and women indicates a positive trend towards inclusivity. The rise in re-joining members suggests a growing awareness of the benefits of maintaining EPF accounts, contributing to long-term financial stability.

The recent data from the EPFO reflects both a thriving job market and a commitment to enhancing social security for workers across India. The trends observed in membership growth, demographics, and regional contributions provide valuable vital information about the evolving landscape of employment and employee benefits in the country.

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