EPFO Sees Significant Growth In Memberships; Driven By Youth And Female Workforce

The Employees’ Provident Fund Organisation (EPFO) has reported a net addition of 18.81 lakh members in September 2024, marking a 9.33% increase compared to the same month last year. This surge in membership highlights both expanding employment opportunities and increased awareness of employee benefits. According to the Ministry of Labour and Employment, the rise can be attributed to effective outreach initiatives and the growing reach of EPFO’s programs.

Rise in Young Workers And Female Participation

A closer look at the data reveals a notable increase in the number of first-time job seekers, especially from the younger demographic. Approximately 59.95% of the new members in September 2024 fall within the 18-25 age group. This indicates that the majority of new EPFO members are young individuals entering the organized workforce for the first time. The net payroll data for this age group shows a 9.14% year-on-year growth, with 8.36 lakh members added in September alone.

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Equally significant is the rise in female participation in the workforce. Of the 18.81 lakh new members added, 2.47 lakh are women—an increase of 9.11% compared to September 2023. Furthermore, the net female membership addition for the month stood at 3.70 lakh, reflecting a 12.11% growth over the previous year. This data signals a positive shift towards a more inclusive and diverse workforce in India.

Rejoining Members Reflect Continued Job Mobility

The payroll data also indicates a high level of job mobility, with approximately 14.10 lakh members rejoining EPFO after exiting in the past. This represents an 18.19% year-on-year increase from September 2023. Many of these individuals switched employers but chose to transfer their accumulated funds rather than opt for a final settlement, helping to maintain their long-term financial security and social security benefits.

Regional Trends And Industry Growth

State-wise data shows that the top five states and Union Territories accounted for 59.86% of the net member addition in September, contributing a total of 11.26 lakh new members. Maharashtra led the way, adding 21.20% of the total new members for the month. Other top contributors include Karnataka, Tamil Nadu, Delhi, Haryana, Gujarat, Uttar Pradesh, and Telangana, each adding over 5% of the total net members.

Industries such as expert services, commercial trading, electrical and mechanical engineering, garment manufacturing, and healthcare showed significant growth in membership. Notably, 41.69% of the total membership increase came from the expert services sector, which includes industries like security services, contractors, and manpower suppliers.