EPFO Sees 16% Rise In Subscribers, 14.6 Lakh Added In December 2021

According to the data, the age-group of 22-25 years registered the highest number of net enrolments with 3.87 lakh additions during December 2021

The EPFO is mulling a new pension product for organised sector workers who are getting basic wages of more than Rs 15,000 per month and are not mandatorily covered under its Employees’ Pension Scheme 1995. Image: Getty

New Delhi: Employees’ Provident Fund Organisation (EPFO) had added 14.6 lakh subscribers on a net basis in December 2021, a rise of 16.4 per cent compared to the year-ago period, the recent payroll data said.

The provisional payroll data has shown that the retirement body had added 12.54 lakh net subscribers in December 2020.

According to a statement by labour ministry, the net subscriber addition in December had increased by 19.98 per cent, as compared to November 2021. The net subscriber addition in November 2021 was revised downwards to 12.17 lakh from 13.95 lakh provisional estimates released in January 2022.

Of the total 14.60 lakh net subscribers added in December 2021, 9.11 lakh new members have been enrolled under EPF & MP Act, 1952 for the first time.

Around 5.49 lakh net subscribers exited but rejoined EPFO by opting to continue their membership with EPFO by transferring their PF accumulations from previous to present PF account instead of opting for final withdrawal. Further, it stated that the number of members exiting EPFO has been on a declining trend since July, 2021.

According to the data, the age-group of 22-25 years registered the highest number of net enrolments with 3.87 lakh additions during December 2021. The age-group of 18-21 also registered a healthy addition of around 2.97 lakh net enrolments.

The age-groups of 18-25 years have contributed around 46.89 per cent of total net subscriber additions in December, 2021. This indicates that many first-time job seekers are joining the organised sector workforce in large numbers.

According to a report by PTI, a state-wise comparison of payroll figures highlighted that the establishments covered in Maharashtra, Haryana, Gujarat, Tamil Nadu, and Karnataka are in lead by adding 8.97 lakh subscribers during the month, which is around 61.44 per cent of total net payroll addition across all age groups.

Gender-wise analysis indicated that net female payroll addition during December is about 3 lakh. Share of female enrolment is about 20.52 per cent of the total net subscribers addition during December, 2021.

Industry-wise payroll data indicated that expert services' category (consisting of manpower agencies, private security agencies and small contractors etc.) constitutes 40.24 per cent of total subscriber addition during the month.

Meanwhile, the EPFO is mulling a new pension product for organised sector workers who are getting basic wages of more than Rs 15,000 per month and are not mandatorily covered under its Employees’ Pension Scheme 1995.

At present, all those employees in the organised sector whose basic wage (basic pay plus dearness allowance) is up to Rs 15,000 per month at the time of joining service are mandatorily covered under EPS-95.

“There has been demand for higher pension on higher contributions among the members of the EPFO. Thus, it is under active consideration to bring out a new pension product or scheme for those whose monthly basic wages are more than Rs 15,000,” a source privy to the development told PTI.