EPFO Sees 9% Growth in Net Member Addition for August 2024

The Employees' Provident Fund Organisation (EPFO) reported a notable increase in net member additions for August 2024, with a total of 18.53 lakh new members, marking a 9.07% year-on-year (YoY) growth compared to the same month in 2023. This surge reflects growing employment opportunities and an increased awareness of employee benefits, spurred by EPFO's enhanced outreach efforts.

Youth Dominate New Enrollments

 A significant portion of new enrollments in August were first-time job seekers, especially from the 18-25 age group. Out of the 9.30 lakh new members, 59.26% belonged to this age bracket, continuing the trend of young individuals entering the organized workforce. The payroll data for this group alone saw an addition of 8.06 lakh members, underscoring the consistent inflow of youth into formal employment.

Job Switchers Drive Re-Enrollments

The data also highlighted that around 13.54 lakh members exited and subsequently rejoined EPFO-covered establishments after switching jobs, showcasing a 14.03% YoY increase. These members opted to transfer their provident fund balances instead of withdrawing them, securing their long-term financial stability and extending social security coverage.

Growing Female Workforce 

Female participation in the workforce saw a steady rise, with around 2.53 lakh new female members joining in August, representing a 3.75% YoY increase. Net female membership for the month stood at 3.79 lakh, reflecting a 10.41% growth compared to August 2023. This increase signals a positive shift towards gender diversity and inclusion in the workforce.

Top States Contributing to Growth

State-wise analysis reveals that five states and union territories—Maharashtra, Karnataka, Tamil Nadu, Haryana, and Delhi—accounted for 59.17% of the net member additions in August, with Maharashtra leading the way by contributing 20.59% of the total. Other states like Gujarat, Telangana, and Uttar Pradesh also saw significant growth, each adding more than 5% of the total net members.

Industry-Wise Insights

In terms of industries, notable growth was observed in sectors such as trading, engineering, construction, agriculture, and beedi making. Approximately 40.36% of new members were from expert services like manpower supply, security services, and contractors, highlighting a strong demand for such roles across various sectors.

 EPFO began releasing monthly payroll data in April 2018, covering member additions, exits, and re-enrollments from October 2017 onwards. The data helps gauge employment trends in the organized sector through Aadhaar-linked Universal Account Numbers (UANs).

eShram-One Stop Solution for Unorganized Workers

In other news, Union Minister Mansukh Mandaviya is set to launch the ‘eShram-One Stop Solution’ initiative in New Delhi. This platform aims to provide unorganized workers with streamlined access to multiple social welfare schemes and government programs. The initiative aligns with the government's broader goal to improve social security for unorganized labor, as outlined in the recent Union Budget.

Also Read: EPFO Hikes Interest Rates To 3-Year High Of 8.25%