EPFO Welcomes 1.1 Million New First-Time Workers in June, Highest Since August 2022.

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In a promising development for the formal job sector, June witnessed a surge in fresh entrants to the Employees’ Provident Fund Organization (EPFO). A remarkable 1.10 million individuals joined EPFO for the first time, marking the highest influx since August 2022. May had already seen 0.92 million new workers enrolling in the EPF.

The Ministry of Labour and Employment, commenting on the provisional payroll data of the EPFO, highlighted, “The overall remittance also testifies the highest numbers in the last eleven months, since August 2022.”

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Notably, this data showcases a substantial rise in female participation, with 0.28 million first-time female members becoming part of the organisation. This surge reflects the highest percentage of new female members in the organized workforce over the past 11 months. Furthermore, the net addition of female members for the month reached approximately 0.39 million, another record high since August 2022.

The organisation payroll data serves as a vital, high-frequency indicator of formal sector job creation in the economy, even though it undergoes periodic revisions.

While the number of new EPFO entrants had exceeded the one-million mark during the first half of the fiscal year 2022-23, it had gradually declined since October 2022, remaining below one million. In August 2022, the previous high had been recorded with 1.06 million new workers joining the EPF, followed by another 1.01 million members in September.

Among these new members, the age group of 18-25 years accounted for a substantial 57.87% of the total additions for the month.

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Overall, in June 2023, the EPFO witnessed a net addition of 1.78 million members. The data reveals that approximately 1.26 million members exited but later rejoined the organisation. The Ministry explained this as members switching jobs and opting to transfer their accumulations instead of applying for a final settlement, thereby extending their social security protection.

The data further illustrates that 3,491 establishments extended social security cover remittances to their employees by submitting their first Electronic Challan cum Receipt during the month.

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