Fresh formal hiring at 5 month high in April 2025, shows EPFO data

EPFO added 894,000 new subscribers in April, an 18.5 per cent rise from March, marking the strongest formal employment growth since the end of FY25 according to payroll data

Fresh formal hiring in India increased by nearly 20 per cent in April to touch a five-month high, thus reversing the deterioration seen in the labour market at the end of FY25.

 

At the turn of the new financial year, the number of new monthly subscribers under the Employees’ Provident Fund (EPF) rose by 18.5 per cent to 894,000 in April from 754,000 in March, according to the latest monthly payroll data released by the Employees’ Provident Fund Organisation (EPFO) on Sunday.

 

EPFO’s data reflects the state of the formal labour market, as only that workforce enjoys social security benefits and is protected by labour laws.

 

In April last year, 981,700 new subscribers had joined the EPF.

 

Of the total 894,000 new EPF subscribers in April this year, the share of those aged 18 to 25 decreased to 57.7 per cent (489,000) from 59 per cent (445,000) the month before. This age group typically comprises first-timers in the labour market, thus reflecting its robustness. 

 

Meanwhile, 245,000 new women subscribers joined the EPF in April, up from 208,000 in March.

 

Net payroll addition stood at 1.91 million in April. It is calculated by taking into account the number of new subscribers, exits, and the return of old subscribers to the social security organisation.

 

Net monthly payroll numbers are provisional and often revised sharply the following month. That is why the new EPF subscriber figure is considered more reliable than net additions.

 

“The above payroll data is provisional since data generation is a continuous exercise, as updating employee records is a continuous process. The previous data gets updated,” said the Labour Ministry in a statement.

 

The data show that 1.57 million members exited and rejoined EPFO in April.

 

“These members switched their jobs and rejoined the establishments covered under the ambit of EPFO and opted to transfer their accumulation instead of applying for final settlement, thus safeguarding long-term financial well-being and extending their social security protection,” said the ministry.