EPFO net new enrolments marginally decline to 1.12 million in March

Net new enrolments with retirement fund body EPFO declined marginally to 11.22 lakh in March from 11.28 lakh in February this year, according to payroll data released on Thursday.

The data provides a perspective on formal sector employment amid the coronavirus pandemic.

During 2020-21, the Employees' Provident Fund Organisation (EPFO) added 77.08 lakh new members. In the year-ago period, it was at 78.58 lakh.

"Total 77.08 lakh net subscribers added under EPFO during FY 2020-21. The provisional payroll data... highlights that the EPFO has added around 11.22 lakh net subscribers in the month of March, 2021," the labour ministry said in a statement.

Despite the coronavirus pandemic, cumulative net payroll addition for FY 2021 is almost at par with last year, with 77.08 lakh net additions to the subscribers' base, it added.

Quarterly analysis of payroll for the 2020-21 indicates that net subscribers' addition improved consistently from the second quarter after taking a hit in the first quarter due to the crisis in the wake of the pandemic, as per the statement.

According to the statement, maximum improvement of 33.64 lakh net subscribers was observed during the fourth quarter (January-March 2021), a growth of 37.44 per cent compared to the third quarter (October-December 2020).

Of the 11.22 lakh net subscribers added during the month of March, around 7.16 lakh new members came under the social security ambit of EPFO for the first time.

Around 4.06 lakh net subscribers exited and then rejoined EPFO by switching their jobs within the establishments covered by EPFO and choosing to retain membership through transfer of funds rather than opting for final settlement.

The number of new subscribers is based on Universal Account Numbers (UANs) generated in the system and also have received non-zero subscriptions. The data of members who have exited EPFO are based on the claims submitted by the individuals/ establishments, and the exit data uploaded by employers.