The rejoining of the EPF exited members indicated that workers were returning to their jobs as India recorded a decline in active Covid-19 cases. In October, there was a steep rise in EPF members, showing that the job market began to pick up.
The provisional payroll data of EPFO released on 20th December 2020 reveals that EPFO has added over 1.15 million net subscribers in October 2020. Despite the pandemic-induced lockdown, EPFO has added over 3.93 million subscribers already during the current financial year.
The number comprises members who have joined during the month and whose contribution has been received by EPFO for the wage month. By year-on-year comparison, October 2020 registered 56% growth in terms of net payroll.
The net subscriber growth in October 2019 was 7.39 lakh. In October 2020, while 7.15 lakh members have joined EPFO. 2.40 lakh members exited. Roughly 6.80 lakh members exited and rejoined EPFO, which indicated switching of jobs within the establishments covered by EPFO and subscribers choosing to retain membership by transferring funds rather than opting for final settlement. Exited members rejoining also indicate that workers Are returning to their jobs with a decline in active COVID-19 cases in India. The maximum number of net subscriber additions for October 2020 has been from the 18-25 age-bracket. possibly due to the nature of the demographic profile of India. This age-group can be considered as fresh hands in the labour market. The group contributed around half the net additions for the month. State-wise comparison of payroll figures shows that Maharashtra, Karnataka, Tamil Nadu, Gujarat and Haryana continue to remain at the forefront of the employment recovery cycle adding approximately 53% of total net payroll addition (over 3.93 million} in the first seven-month period of the current financial year across all the age groups. EPFO is a social security organization, providing various services to the members covered under the purview of the EPF & MP Act. 1952 including the provident fund, pension on retirement and family pension/insurance in case of the untimely death of the member.
