EPFO adds record 19.5 lakh net members in May

Retirement fund body EPFO has recorded the highest net addition of 19.50 lakh members in May 2024, the Labour Ministry said on Saturday.

The addition during the month is the highest since the first payroll data was issued in April 2018, the ministry said in a statement.

The ministry stated that year-over-year analysis showed a 19.62 per cent growth in net member additions compared to May 2023.

This surge in membership can be attributed to numerous factors, including increased employment opportunities, a growing awareness of employee benefits, and the effectiveness of EPFO's outreach programmes, it stated.

The data indicates that around 9.85 lakh new members have enrolled during May 2024. There is an increase of 10.96 per cent in the new members from the previous month of April 2024 and an 11.5 per cent increase from the previous year May 2023.

A noticeable aspect of the data is the dominance of the 18-25 age group, constituting a significant 58.37 per cent of the total new members added in May 2024.

This is in consonance with the earlier trend which indicates that most individuals joining the organized workforce are youth, primarily first-time job seekers, it stated..

In addition, the net payroll data for the age group 18-25 for May 2024 is the highest since the first payroll data was published.

The payroll data highlighted that approximately 14.09 lakh members exited and subsequently re-joined EPFO. This figure depicts year-over-year growth of 23.47 per cent compared to May 2023.

These members switched their jobs and re-joined the establishments covered under the ambit of EPFO and opted to transfer their accumulations instead of applying for final settlement thus, safeguarding long-term financial well-being and extending their social security protection.

Gender-wise analysis of payroll data unveiled that of the new members added during the month, around 2.48 lakh were female members. This figure exhibited year-over-year growth of 12.15 per cent compared to May 2023.

Also, the net female member addition during the month stood at around 3.69 lakh reflecting year-over-year growth of 17.24 per cent compared to May 2023.

The surge in female member additions is indicative of a broader shift towards a more inclusive and diverse workforce.

State-wise analysis of payroll data denoted that net member addition is the highest in the five states/ UTs of Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Haryana.

These states constitute around 58.24 per cent of net member addition, adding a total of 11.36 lakh net members during the month. Of all the states, Maharashtra is leading by adding 18.87 per cent of net members during the month.