EPFO Adds 17.89 Lakh New Members In June 2023, Highest in 11 Months

The EPFO released provisional payroll data showing a significant increase of 17.89 lakh new members in June 2023. This increase was attributed to 3,491 establishments providing social security coverage by submitting their initial ECR. Compared to May 2023, there was a 9.71% rise in net members. This month's data also indicated the highest total remittance in eleven months, dating back to August 2022. 

In June 2023, around 10.14 lakh new members joined, the highest since August 2022. Among these, 57.87% were aged 18-25, reflecting a growing trend of youth entering the organized workforce sector. The payroll data suggests that around 12.65 lakh members of EPFO left and then returned, indicating job transitions within EPFO-covered establishments. These members opted to transfer their savings instead of settling, thus maintaining their social security coverage.

Regarding gender analysis, out of the 10.14 lakh new members in the month, about 2.81 lakh are newly registered females, showing their initial involvement with EPFO. The past 11 months have seen a peak in the proportion of new female members entering the workforce. Additionally, the net increase in female members this month is about 3.93 lakh, the highest since August 2022.

The data analysis by state reveals that Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Haryana lead in net membership growth, contributing 60.40% of the expansion, with Maharashtra accounting for 20.54% of the overall increase.

Examining specific sectors, significant workforce growth is observed in Trading-Commercial, Building & Construction, Electrical, Mechanical, and General Engineering industries. This trend is followed by growth in Textiles, Financial Institutions, Educational Institutions, and Healthcare Facilities. Moreover, about 40.36% of the net membership increase comes from specialized services such as manpower suppliers, general contractors, security services, and related activities.

The provided payroll data is preliminary and subject to monthly updates due to the continuous process of updating employee records. EPFO has been releasing monthly payroll data since April 2018, covering data from September 2017. This data includes new enrolments with Aadhaar-validated Universal Account Numbers (UAN), exits from EPFO coverage, and re-enrolments, leading to the calculation of net monthly payroll figures.