Increase in Employment as Subscribers Under EPFO Grow to 14.5mn in FY2023-24

Posted by Written by Archana Rao Reading Time: 3 minutes

Official employment figures for FY 2023-24 show increase in jobs in India as subscribers under the Employees’ Provident Fund Organization (EPFO) rose to 14.5 million from 13.8 million in the previous fiscal, marking a five percent increase.

EPFO subscribers grow 5 percent in FY 2024

The rise in employment numbers suggests a significant influx of youth entered the organized workforce, that is, primarily first-time job seekers. According to India’s Ministry of Labour and Employment, 56.83 percent of new EPFO members in March 2024 were in the 18-25 age bracket. Additionally, more companies are complying with EPF norms, contributing to this increase.

The latest preliminary payroll data shows that 14.5 million net members were added to EPFO in March 2024, compared to 13.8 million in the same period of FY2023. Post-pandemic growth rates were particularly strong, with increases of 58 percent in FY 2021-22, 13 percent in FY 2022-23, and 5 percent in FY’24.

Job creation scenario

January witnessed the largest job increase in FY 2023-24, with 1.60 million new jobs created. Furthermore, 48,262 new establishments complied with the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, ensuring social security coverage for their employees. The number of official jobs created under EPFO climbed by 11.4 percent, from 13.85 million in 2022-2023 to 15.4 million in 2023-2024.

Find Business Support
Build Your Asia Business with Turnkey Market Entry and Cross-Regional Support

A gender-wise analysis of the payroll data reveals that out of 740,000 new members, around 200,000 were female members. The net female member addition for that month stood at around 290,000. This indicates a broader shift towards a more inclusive and diverse workforce.

Although the overall number of new additions to the payroll was lower in FY24 (10.7 million) compared to FY23 (11.4 million), fewer people exited the workforce in FY24.

State-wise payroll performance

Find Business Support
Learn About Our HR and Payroll Retainer Services

In India’s northern region, states like Uttar Pradesh and Uttarakhand registered growth rates of 20.3 percent and 19.99 percent, respectively, the highest in the region for formal job creation in FY’24. This growth is likely due to increasing formalization of these state economies.

Other states, including Punjab, Himachal Pradesh, and Rajasthan, also saw significant increases in formal jobs, with growth rates above 15 percent. Punjab added 173,000 new formal jobs, Himachal Pradesh 103,000, and Rajasthan 532,000. The highly industrialized states of Maharashtra, Tamil Nadu, Karnataka, and Gujarat also saw substantial formal job creation.

Payroll data highlights: Focus on savings, preferred industries

The Ministry of Labour and Employment noted that many members switched jobs and rejoined establishments under EPFO, opting to transfer their accumulations instead of applying for final settlement. This trend safeguards long-term financial well-being and extends social security protection. Approximately 1.18 million members exited and subsequently rejoined EPFO.

Industry-wise, there was an increase in members working in manufacturing, marketing services, computer-related sectors, restaurants, accounting, fish processing, and non-veg food preservation. Around 43 percent of net EPFO membership additions came from expert services, including manpower suppliers, contractors, security services, and miscellaneous activities.

EPFO has been releasing monthly payroll data since April 2018, covering the period from September 2017 onwards. The data includes members joining EPFO for the first time through Aadhaar-validated Universal Account Numbers (UAN), existing members exiting EPFO coverage, and those rejoining as members, to arrive at the net monthly payroll.

Summary

India’s latest EPFO payroll data indicates steady yet modest growth in formal job creation for FY’24. Although the post-pandemic years saw sharper increases in EPFO enrolments, this past fiscal year showed more tempered growth.

Notably, the majority of new members were from the younger age group, reflecting a dynamic workforce. The FY 2023-24 data also highlights positive trends in gender inclusivity and workforce diversity across various industries.

Despite a slight dip in new payroll additions compared to the previous year, the overall employment scenario in India remains resilient, with fewer workforce exits and a focus on long-term financial well-being and social security protection for employees.

DOING BUSINESS IN INDIA EXPLORE IN-DEPTH INVESTMENT AND BUSINESS GUIDES.
Explore vital economic, geographic, and regulatory insights for business investors, managers, or expats to navigate India’s business landscape. Our Online Business Guides offer explainer articles, news, useful tools, and videos from on-the-ground advisors who contribute to the Doing Business in India knowledge. Start exploring

About Us

India Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Delhi, Mumbai, and Bengaluru in India. Readers may write to india@dezshira.com for support on doing business in India. For a complimentary subscription to India Briefing’s content products, please click here.

Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Vietnam, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.