More than 8 lakh net subscribers added during first quarter of FY 21: EPFO payroll data

Close to 8.5 lakh new net subscribers were added to the Employees Provident Fund during the first quarter of 2020-21, the Ministry of Labour and Employment said on Thursday.

While 6.55 lakh net subscribers were added in June, 20,000 were added in April and another 1.72 lakh in May despite the Covid-19 lockdown.

According to the provisional payroll data published by EPFO, the Ministry said 8.47 lakh members were added during April-June period. It said the Covid-19 pandemic had adversely affected the enrolments in the month of April and May 2020.

The subscriber base growth is on account of the increased number of new subscribers, lower exits and higher rejoining by exited members.

The new subscriber joining has increased roughly by 64% in June compared to May. In addition, the exits from EPFO subscriber base declined by nearly 33% from 4.45 lakh in May to 2.96 lakh in June 2020, a statement said.

The number of members who exited and then rejoined indicates switching of jobs by subscribers within the establishments covered by EPFO. This has also increased by approximately 44% for the month of June over May with more subscribers choosing to retain membership by transferring funds rather than opting for final settlement.

When it comes to women enrolment, the data showed that the figures have improved. While 37085 women joined the EPFO in April, it rose to 1,06,059 in June in absolute terms, even though the overall female participation in the workforce remains low.

The category-wise analysis showed that “expert services” had a share of approximately 46% and 45% during 2018-19 and 2019-20 respectively. In the first quarter of 2020-21, it stands at 52.7% which is reflecting that many industries are yet to recover but expert services have made good progress.

The absolute figure for net enrolment in Expert Services category during June is 3.45 lakh, which is more than the monthly average of three lakh during 2019-20. Expert services predominantly consist of manpower agencies, private security agencies and small contractors.