Formal job creation touched an 11-month high in June this year. The Employees' Provident Fund Organisation (EPFO) added 17.89 lakh net members in June, according to the latest data released by the Ministry of Labour & Employment on August 18. Of this, as many as 10.14 lakh new members were enrolled with EPFO during the month under review which is the highest since August last year.
The Employee's Pension Scheme (EPS) was introduced in 1995. The scheme, administered by the EPFO, provides employees with a pension after they reach the age of 58. The employee and the employer contribute 12% of the employee's basic salary and Dearness Allowance (DA) to the EPF. While the employee's entire part goes to EPF, the employer's contribution goes to EPS at a rate of 8.33%.
On a month-on-month basis, formal job creation witnessed a 9.71% increase in net members as against 16.30 lakh members in May. Among the newly joined members, the age group of 18-25 years constitutes 57.87% of the total new members added during the month. "This demonstrates an increasing trend in youth enrollment, who are mostly first-time job seekers joining the organized sector workforce of the country," says the ministry.
As per the EPFO data, as many as 12.65 lakh members exited but rejoined EPFO. These members switched jobs, re-joined the establishments covered under EPFO, and opted to transfer their accumulations instead of applying for final settlement thus, extending their social security protection.
Gender wise analysis of payroll data represents 2.81 lakh new female members was added during the month under review. According to the ministry, the percentage of new female members joining the organised workforce has been the highest in last 11 months. Also, the net female member addition during the month stood at around 3.93 lakh, which is also the highest since August last year.
Meanwhile, Maharashtra, Tamil Nadu, Karnataka, Gujarat and Haryana added the highest number of subscribers amongst states. These states constitute around 60.40% of net member addition, adding a total of 10.80 lakh members during the month. Of all the states, Maharashtra is leading by adding 20.54% of net members during the month.
Amongst industries, establishments engaged in trading-commercial, building and construction industry, electrical, mechanical and general engineering products witnessed significant growth in the net member addition. Notably, of the total net membership, around 40.36% addition is from expert suppliers (consisting of manpower suppliers, normal contractors, security services, miscellaneous activities etc.).
In March this year, the Central Board of Trustees (CBT) of the Employees Provident Fund suggested an 8.15% interest rate on EPF accumulations in members' accounts for the financial year 2022-23. Last year, the EPFO slashed the interest on EPF to over a four-decade low of 8.1% from 8.5% in 2020-21.
Formal job creation touched an 11-month high in June this year. The Employees’ Provident Fund Organisation (EPFO) added 17.89 lakh net members in June, according to the latest data released by the Ministry of Labour & Employment on August 18. Of this, as many as 10.14 lakh new members were enrolled with EPFO during the month under review which is the highest since August last year.
The Employee's Pension Scheme (EPS) was introduced in 1995. The scheme, administered by the EPFO, provides employees with a pension after they reach the age of 58. The employee and the employer contribute 12% of the employee's basic salary and Dearness Allowance (DA) to the EPF. While the employee's entire part goes to EPF, the employer's contribution goes to EPS at a rate of 8.33%.
On a month-on-month basis, formal job creation witnessed a 9.71% increase in net members as against 16.30 lakh members in May. Among the newly joined members, the age group of 18-25 years constitutes 57.87% of the total new members added during the month. "This demonstrates an increasing trend in youth enrollment, who are mostly first-time job seekers joining the organized sector workforce of the country," says the ministry.
As per the EPFO data, as many as 12.65 lakh members exited but rejoined EPFO. These members switched jobs, re-joined the establishments covered under EPFO, and opted to transfer their accumulations instead of applying for final settlement thus, extending their social security protection.
Gender-wise analysis of payroll data represents 2.81 lakh new female members were added during the month under review. According to the ministry, the percentage of new female members joining the organised workforce has been the highest in the last 11 months. Also, the net female member addition during the month stood at around 3.93 lakh, which is also the highest since August last year.
Meanwhile, Maharashtra, Tamil Nadu, Karnataka, Gujarat and Haryana added the highest number of subscribers amongst states. These states constitute around 60.40% of net member addition, adding a total of 10.80 lakh members during the month. Of all the states, Maharashtra is leading by adding 20.54% of net members during the month.
Amongst industries, establishments engaged in trading-commercial, building and construction industry, electrical, mechanical and general engineering products witnessed significant growth in the net member addition. Notably, of the total net membership, around 40.36% addition is from expert suppliers (consisting of manpower suppliers, normal contractors, security services, miscellaneous activities etc.).
In March this year, the Central Board of Trustees (CBT) of the Employees Provident Fund suggested an 8.15% interest rate on EPF accumulations in members' accounts for the financial year 2022-23. Last year, the EPFO slashed the interest on EPF to over a four-decade low of 8.1% from 8.5% in 2020-21.
