EPFO data shows 2.27 crore new jobs created between FY 2020 to FY 2023

• The new jobs constitute 47% of the total new payroll.
  
• The payroll data from Q1 FY 2024 reveals that 44 lakh net new EPF subscribers have registered with EPFO.
  
• Over the past four years, approximately 31 lakh new subscribers have joined NPS.
  

Analysing the Employees Provident Fund Organisation (EPFO) payroll data trends over the past four years shows that there were 4.86 crore net new Employee Provident Fund (EPF) subscriber additions from fiscal year 2020 to 2023. This figure includes first payroll, second payroll (members who rejoined or resubscribed), and formalised payrolls.

The findings are based on the analysis of monthly payroll data which the government has been regularly releasing since April 2018 as published in the SBI Ecowrap report. The data includes information from the Employees' Provident Fund Organization (EPFO), the National Pension System (NPS), and the Employees' State Insurance Corporation (ESIC).

Upon closer examination, the net new payroll (first job or fresh job) was estimated at 2.27 crore during this period, factoring in re-joined and re-subscribed members as well as formalisation based on electronic challan cum return (ECR) data. This means that India added 2.27 crore news jobs under EPFO in the above period, accounting for 47% of the total new payroll. ECR is a monthly electronic return employers submit through the unified portal, providing wage and contribution details for all members, including new and existing members, with basic information.

Furthermore, the data shows that there were 2.17 crore individuals with a second job (or exited members who rejoined and resubscribed) over the four-year period ending in FY 2023. There was also an increase of 42 lakh in formalisation during these years, which refers to the inclusion of informal workers into the EPFO for social security benefits.

New net EPFO subscribers may mark a record high…

The payroll data from the first quarter of fiscal data for FY 2024 reveals an encouraging pattern, with 44 lakh net new EPF subscribers having already registered, including 19.2 lakh in the first payroll segment. If this trend continues throughout the fiscal year, it is anticipated that the net new payroll will exceed 160 lakh, setting a new record, with first payroll additions ranging from 70 to 80 lakh.

Additionally, NPS data reveals that in FY 2023, there were 8.24 lakh new subscribers, with state government payrolls accounting for 4.64 lakh, followed by non-government with 2.30 lakh, and central government with 1.29 lakh new subscribers.

31 lakh new subscribers have joined NPS in the last four years

Over the past four years, approximately 31 lakh new subscribers have joined NPS. In total, the cumulative payroll generation for EPFO and NPS exceeds 5.2 crore during the period from FY 2020 to FY 2023.

27% of the payroll consists of women

An interesting observation in the EPFO data is a notable decrease in the number of members revising their status by rejoining or resubscribing in the first quarter of the current fiscal year. This suggests that more individuals may be opting to continue with their current employment.

Additionally, approximately 27% of the payroll comprises women. To facilitate an increase in women's participation in the labour force.