Pension fund body EPFO ​​adds record 19.5 lakh net members in May 2024

New Delhi: Pension fund EPFO ​​has recorded the highest net expansion of 1.9 million members in May 2024, the labour ministry said on Saturday.

The increase in the past month is the highest since the first payroll data was published in April 2018, the ministry said in a statement.

The ministry said a year-on-year analysis showed a 19.62 percent growth in the number of net new members compared to May 2023.

This increase in membership can be attributed to several factors including increased employment opportunities, growing awareness of employee benefits and the effectiveness of EPFO’s outreach programmes, the report said.

The data shows that around 9.85 lakh new members have registered in May 2024. There is a 10.96 percent increase in the number of new members compared to the previous month of April 2024 and a 11.5 percent increase compared to the previous year May 2023.

What is striking about the data is the dominance of the 18 to 25 age group. This group represents no less than 58.37 percent of the total number of new members in May 2024.

This is consistent with the earlier trend that most people entering the organized labor force are young people, mainly those looking for a job for the first time, it said.

In addition, the net payroll data for the 18-25 age group for May 2024 are the highest since the first payroll data were published.

The payroll data showed that around 14.09 lakh members left EPFO ​​and subsequently rejoined. This figure shows a year-on-year growth of 23.47 per cent compared to May 2023.

These members have changed jobs and returned to the institutions under the purview of EPFO. They have chosen to transfer their accumulated funds instead of applying for a permanent settlement. In this way, their long-term financial well-being has been ensured and their social security protection has been extended.

Gender analysis of payroll data revealed that of the new members added in the month, around 2.48 lakh were female members. This figure showed a year-on-year growth of 12.15 percent compared to May 2023.

Moreover, the net addition in female membership during the month was around 3.69 lakh, marking a year-on-year growth of 17.24 percent compared to May 2023.

The increase in female membership is indicative of a broader shift toward a more inclusive and diverse workforce.

An analysis of state-wise payroll data revealed that net membership expansion is highest in the five states/UTs of Maharashtra, Karnataka, Tamil Nadu, Gujarat and Haryana.

These states constitute around 58.24 percent of the net membership addition, adding a total of 11.36 lakh net members during the month. Among all the states, Maharashtra leads with 18.87 percent net membership addition during the month.