The Employees Provident Fund (EPF) scheme was introduced as the primary scheme under the Employees’ Provident Funds & Miscellaneous Provisions Act implemented in 1952. The EPF scheme functions & is managed by the Employees’ Provident Fund Organization (EPFO). As per the EPF scheme, the employee has to pay a certain contribution/share towards EPF scheme and the same share will be matched by the employer. The employee will receive the amount which is the sum of both their & their employer’s contribution with interest on both when they retire or in case of emergency situations.
As India begun recovery in June from the 2021 Covid-19 lockdown months April & May, a sharp rise in the number of job opportunities and more hiring was witnessed. Companies trying to stabilize their business began hiring in large numbers to cater to the demand for services during the festival months from September to December (Ganesh Chaturthi to Christmas/New Year). Many industries, factories, establishments, start-ups started hiring in large numbers since the month of July. Work opportunities increased across all sectors to match the workload they would face over the festival periods & to meet year-end targetsSponsored Links
Employees’ Provident Fund Organization (EPFO) data indicated a net 14.65 lakh+ new members were added to the payroll. Comparatively, in the month of June, approximately 11 lakh+ new subscribers were added to the EPF records. The rate of new employment for the month of July was nearly 32% more than the rate of new employment for the month of June. The payroll data of EPFO also displayed that around 9 lakh+ members of EPFO exited & rejoined the EPFO due to change of jobs/employer. Out of the 14.65 lakh+ new members of the EPFO, nearly 9 lakh members were new EPFO members.
The states that registered highest hiring numbers were Maharashtra, Haryana, Gujarat, Tamil Nadu & Karnataka. These 5 states hired roughly 9 lakh+ new EPFO members. Noticeably, majority of the EPFO subscribers chose to continue their membership by transferring PF accumulation balance from previous employer to the current PF account instead of going for final withdrawal. The top states in hiring new employees mentioned above accounted for 63% of the total payroll addition across all age categories.Sponsored Links
The percentage of new women employees registered under the EPFO was more than 20% according to the data from EPFO. The number of new female employees added to payroll surged past the 3-lakh mark during July 2021, this is a 70% increase compared to the number of new women employees added in June 2021 – 2.1 lakhs. Observably, this means fewer female employees exited employment & more joined during the month of July. Professional expert services categories (private security, small specialist contractors, small industries etc.) had around 42% share in new employees’ addition in this period. Majority of new subscriber additions to the EPFO were part of the 18-25 years old age category, more than 7 lakhs in number – this makes up almost 50% of the total new employee addition to the EPFO for this period.Sponsored Links