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EPFO net new enrolments at 6.55 lakh in June, same as monthly average of last year

New subscribers of the retirement fund body increased to 4.98 lakh in June from 3.03 lakh in May, the Labour Ministry said in a statement.

By: ENS Economic Bureau | New Delhi | Updated: August 21, 2020 11:28:54 am
EPFO, PFO, Provident Fund, Employees Provident Fund, Economy news, Business news, Indian ExpressThe EPFO had earlier planned to liquidate some of its investment in exchange traded funds to meet the deficit for providing 8.5 per cent interest for the last fiscal.

Net new enrolments under the Employees’ Provident Fund Organisation (EPFO) stood at 6.55 lakh in June, the same level as the average monthly enrolment last year. On a monthly basis, however, it registered an increase from 1.72 lakh in May, data released by EPFO showed Thursday.

New subscribers of the retirement fund body increased to 4.98 lakh in June from 3.03 lakh in May, the Labour Ministry said in a statement.

The EPFO data, which is seen as an indicator for formal employment, is, however, in divergence with the employment data released by Centre for Monitoring Indian Economy (CMIE), as per which 1.89 crore salaried jobs were lost during April-July.

The Ministry said the subscriber base increase by 8.47 lakh during the first quarter, with June seeing a pick-up in enrolments after the COVID-19 pandemic adversely affected the enrolments in April-May.

The net new enrolments with EPFO had dropped to 5.72 lakh in March 2020 from 10.21 lakh in February, as per the payroll data released in May.

Latest data released on Thursday showed that net new enrolments in April were just 20,164. The net new enrolments with the EPFO hover around 7 lakh every month on an average.

During 2019-20, the number of net new subscribers rose to 78.58 lakh as compared to 61.12 lakh in the preceding fiscal, as per the data.

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 per cent for the month of June over May 2020, with more subscribers choosing to retain membership by transferring funds rather than opting for final settlement, it said.

Category wise, net enrolment in ‘expert services’ category, consisting of manpower agencies, private security agencies and small contractors and having a share of about 45 per cent during 2019-20, stood at 3.45 lakh in June, slightly higher from the monthly average of 3 lakh in 2019-20.

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