EPFO Records 20 Lakh New Members in July 2024

Why in the news?

EPFO added a record-breaking 19.94 lakh net members in July 2024, reflecting significant job growth and increasing  female participation in India’s formal employment sector.

Record EPFO Member Additions in July 2024:

  • Net Additions: EPFO added 19.94 lakh members in July 2024, the highest since April 2018.
  • Growth: This represents a 6.3% increase over July 2023’s 18.75 lakh and a significant rise from 16.70 lakh in June 2024.

Employment Trends and Youth Participation:

  • New Members: 10.52 lakh were first-time joiners, a 2.66% increase from June 2024.
  • Youth Employment: The 18-25 age group saw the highest additions with 8.77 lakh net members, reflecting a trend of young job seekers entering the organised workforce.

Female Participation and State Contributions:

  • Female Membership: 3.05 lakh new female members joined, a 10.94% year-on-year growth. Total net female additions stood at 4.41 lakh, marking a 14.41% rise.
  • Top States: Maharashtra, Karnataka, Tamil Nadu, Haryana, and Gujarat contributed 59.27% of the total new additions, with Maharashtra leading at 20.21%.

What is EPFO?

  • Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, established by the Employee Provident Fund and Miscellaneous Provision Act, 1952.
  • It provides social security to workers across India and is one of the largest social security organisations globally.

Major EPFO Schemes:

    • EPF Scheme 1952:
      • Offers accumulation plus interest upon retirement or death.
      • Allows partial withdrawals for education, marriage, illness, and housing.
    • Pension Scheme (EPS) 1995:
      • Monthly pension for superannuation, disability, survivor, widow(er), and children.
      • Minimum pension for disablement.
    • Insurance Scheme (EDLI) 1976:
      • Provides benefits in case of death, offering up to ₹6 lakh to dependents.

Key Features:

  • UAN (Universal Account Number) allows easy portability of PF accounts.
  • Both employer and employee contribute 12% of the salary to EPF; part of the employer’s contribution goes to EPS.
  • Social Security Code 2020 mandates social security for gig workers, platform workers, and unorganised workers.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times .