EPFO sees record net addition of 19.5 lakh members in May

Record EPFO addition: The Employees' Provident Fund Organisation (EPFO) has recorded its highest net addition of 19.5 lakh members in May 2024, the Labour Ministry announced on Saturday.

The increase marks the highest monthly addition since the EPFO began releasing payroll data in April 2018, according to the ministry’s statement.

The year-over-year analysis reveals a 19.62 per cent growth in net member additions compared to May 2023. The surge in membership is attributed to various factors, including enhanced employment opportunities, greater awareness of employee benefits, and effective outreach programmes by the EPFO.

Data shows that approximately 9.85 lakh new members enrolled in May 2024, reflecting a 10.96 per cent rise from April 2024 and an 11.5 per cent increase from May 2023.

A significant trend in the data is the dominance of the 18-25 age group, which constitutes 58.37 per cent of the total new members added in May 2024. This aligns with previous trends indicating that many new entrants to the organised workforce are young first-time job seekers.

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

The payroll data also indicates that approximately 14.09 lakh members exited and re-joined the EPFO in May 2024, showing a 23.47 per cent year-over-year growth compared to May 2023. These members opted to transfer their accumulations rather than apply for final settlement, thus extending their social security protection and safeguarding long-term financial well-being.

Gender-wise analysis reveals that of the new members added in May, around 2.48 lakh were female, exhibiting a 12.15 per cent year-over-year growth compared to May 2023. The net addition of female members during the month stood at around 3.69 lakh, reflecting a 17.24 per cent increase from May 2023. This surge in female membership indicates a broader shift towards a more inclusive and diverse workforce.

State-wise analysis shows that Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Haryana saw the highest net member additions, collectively accounting for 58.24 per cent of the total with 11.36 lakh new members in May. Maharashtra led the way, contributing 18.87 per cent of the net additions for the month.

(With PTI inputs)