EPFO subscriber surge signifies employment boost in fiscal 2024
The Employees' Provident Fund Organisation (EPFO) has seen a membership growth of over 19% YoY, reaching 1.65 crore members in fiscal 2024, according to the latest payroll data. This increase is indicative of an improving employment landscape in India. This rise in EPFO subscriptions signifies the job market's formalization, and extension of social security benefits to workers in organized and semi-organized sectors.
Historical growth and impact of the pandemic
Historical data reveals that the EPFO's net subscriber base expanded from 61.12 lakh in 2018-19 to 78.58 lakh in 2019-20. However, the COVID-19 pandemic caused a slight dip to 77.08 lakh in 2020-21. The situation rebounded with net additions reaching 1.22 crore in 2021-22, and further escalating to 1.38 crore in 2022-23. The EPFO subscribers further rose in fiscal 2023-24.
EPFO subscriptions indicate job market formalization
According to a Labour Ministry official, "In last 6 and half years alone, more than 6.1 crore members joined the EPFO fold, indicating formalization of the job market." The COVID-19 pandemic initially led to a decline in net additions during April-May 2020. However, with the easing of restrictions, the subscriptions recovered swiftly, reaching 1.22 lakh in September of that year.
