The provisional payroll data published by EPFO on 20th August 2020 reveals that the subscriber base of EPFO increased by around 8.47 lakh members during the first quarter of FY21. The COVID-19 pandemic outbreak had adversely affected the enrolments in the month of April and May 2020. Despite the lockdown, around 0.20 lakh and 1.72 lakh net new subscribers were added to social security schemes of EPFO in the month of April and May 2020.The month of June has seen speedy recovery with addition of 6.55 lakh net subscribers registering a remarkable 280% month on month growth. The data published comprises of 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 rejoining by exited members. The new subscriber joining has increased roughly by 64 % from 3.03 lakh in May to 4.98 lakh in June 2020. In addition, the exits from EPFO subscriber base declined by nearly 33% from 4.45 lakh in May to 2.96 lakh in June 2020.
The number of members who exited and then rejoined, indicates switching of jobs by subscribers within the establishments covered by EPFO. This has also increased by approximately 44% for the month of June, 2020 over May, 2020, with more subscribers choosing to retain membership by transferring funds rather than opting for final settlement.
Gender wise analysis highlights that the new enrolment of female workers has improved from 37085 in April 2020 to 106059 in June 2020 in absolute terms, even though the overall female participation in workforce remains low.
Category wise analysis of industry indicates “Expert services” category had a share of approximately 46% and 45% during 2018-19 and 2019-20 respectively. In the first quarter of 2020-21 it stands at 52.7% which is reflecting that many industries are yet to recover but Expert Services has made good progress. The absolute figure for net enrolment in Expert Services category during June 2020 is 3.45 lakh, which is more than the monthly average of 3 lakh during 2019-20. Expert services predominantly consist of man power agencies, private security agencies and small contractors.
The new establishments that remitted their first ECR has grown from its low of 820 in April 2020 to 1802 in May. In the month of June 2020 the growth continued with 2390 establishments registering their first ECR recording a month on month growth of 32%
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.Tags : epfocorporate law