EPFO adds 3.18 lakh new subscriber in May

New Delhi, July 23 (KNN) New enrolments with Employees' Provident Fund Organisation (EPFO) rose to 3.18 lakh in May from 1 lakh during the April 2020, according to its latest payroll data, providing a perspective on employment in the formal sector amid the COVID-19 crisis.

''The subscriber base has grown by 3.18 lakh new net members during May 2020, registered a whopping 218% month on month growth. Despite the lockdown, around 1 lakh net new subscribers were added to social security schemes of EPFO in April 2020,'' said the Ministry of Labour and Employment in a statement on Wednesday.

Despite the lockdown, around 1 lakh net new subscribers were added to social security schemes of EPFO in April 2020.  The data published comprises all the new members who have joined during the month and whose contribution is received.

The subscriber base growth is on account of increased number of new subscribers, lower exits and higher re-joining by exited members. The new subscriber joining has increased roughly by 66% from 1.67 lakh in April to 2.79 lakh in May 2020. In addition, the exits from EPFO subscriber base declined by nearly 20% from 2.97 lakh in April to 2.36 lakh in May 2020.

“The number of members who exited and then re-joined, indicates switching of jobs by subscribers within the establishments covered by EPFO.  This has also increased by approximately 19% for the month of May 2020 over April 2020, with more subscribers choosing to retain membership by transferring funds rather than opting for final settlement,” the statement added.

EPFO manages social security funds of workers in the organised/semi organised sector in India and has more than 6 crore active members. The payroll data is provisional as updation of employee records is a continuous process and it gets updated in subsequent months.