15.41 Lakh Net Subscribers Added During September 2021 in EPFO

LFPR (Labour Force Participation Rate), WPR (Worker Population Ratio) and UR (Unemployment Rate) are the indicators reveal that the employment scenario has improved significantly over the years (as per PLFS data).

In the year 2019-20, Labour Force Participation Rate for persons aged 15 years and above, rose significantly to 53.5 % as compared to 49.8 % in 2017-18 and 50.2% in 2018-19 indicating a positive aspect of a greater number of peoples are entering in the labour force (employed + unemployed) of the nation.

Unemployment Rate has declined to 4.8% as compared to 6.0% in 2017-18 and 5.8% in 2018-19 indicating that the number of unemployed persons has reduced considerably.

The data further showed that the WPR has also increased to 50.9 % from that of 46.8 % in 2017-18 and 47.3% in 2018-19, indicating more persons of age 15 years and above are now employed as compared to preceding years.  

Provisional payroll data of EPFO published on 20^th June, 2021, highlights that despite Covid-19 pandemic, cumulative net addition of subscribers for FY 20-2021 i.e., 77.08 lakh is almost at par with last year viz. 2019-20 (78.58 lakh). It is observed that there is addition in net payroll in each month of 2020-21 except for the month of April and May 2020.

It is pertinent to mention here that most of the economic activities during the month of April and May 2020 were at the halt due to lockdown measures put in place in these months. With the unlocking of economic activities in phased manner w.e.f June 2020, addition can be seen in the net payroll data in the subsequent months. As, per the provisional payroll data of EPFO published on 20 November, 2021, EPFO has added around 15.41 lakh net subscribers during the month of September 2021.

Employees’ Provident Fund Organization (EPFO) is a mandatory saving scheme under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, covering every establishment in which 20 or more persons are employed subject to certain conditions and exemptions as provided for in the Act. The number of members subscribing to this scheme gives an idea of the level ofemployment in the  formal  sector  as  the  subscribers  get  certain entitlements  as  provided  for  in  the  Act..