EPFO records 9.07% rise in new member additions, reaching 18.53 lakh in August

The Employees' Provident Fund Organisation (EPFO) recorded a 9.07 per cent increase in net new member additions, totaling 18.53 lakh in August compared to the previous year, according to payroll data released on Sunday.

In August 2024, approximately 9.30 lakh new members were enrolled, marking a 0.48 per cent rise from August 2023, as stated by the Ministry of Labour.

Factors fuelling membership increase

This uptick in new memberships is attributed to enhanced employment opportunities, heightened awareness of employee benefits, and the effectiveness of EPFO's outreach initiatives.

Provisional payroll data for August 2024 indicates a net addition of 18.53 lakh members, reflecting a 9.07 per cent growth year-on-year. Notably, individuals aged 18-25 made up 59.26 per cent of the total new member additions, with 8.06 lakh in that age group.

This trend aligns with previous data, showing that many new entrants to the organized workforce are young, primarily first-time job seekers.

The payroll figures also reveal that around 13.54 lakh members left and later rejoined EPFO, representing a 14.03 per cent year-on-year increase. These individuals changed jobs and rejoined EPFO-covered establishments, opting to transfer their accumulations rather than settle their accounts, thereby enhancing their long-term financial security and social protection.

Analysing gender demographics, around 2.53 lakh of the new members were women, showing a year-on-year growth of 3.75 per cent. The net addition of female members for the month was approximately 3.79 lakh, reflecting a robust year-on-year increase of 10.41 per cent. This growth in female membership suggests a shift towards a more inclusive and diverse workforce.

Top states drive membership growth

State-wise analysis indicates that the top five states and Union Territories contributed about 59.17 per cent of the total net member additions, accounting for approximately 10.97 lakh new members in August. Maharashtra led the way, contributing 20.59 per cent of the total net additions for the month.

Additionally, states such as Karnataka, Tamil Nadu, Haryana, Delhi, Gujarat, Telangana, and Uttar Pradesh each contributed more than 5 per cent of the total net member growth during this period.

Industry-wise, there was significant membership growth in sectors such as trading, engineering contracting, building and construction, agriculture, and Beedi making. Notably, 40.36 per cent of net membership growth came from expert services, including manpower suppliers and security services.

Notably, the payroll data is provisional, as employee records are continuously updated. The monthly payroll count considers first-time members joining through Aadhaar-validated Universal Account Numbers (UAN), existing members exiting EPFO coverage, and those rejoining after a break in membership.