At least 10 lakh jobs added in August 2020; EPFO data shows recovery in job market

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October 23, 2020 6:22 PM

aking together the new entrants and those who exited but returned, the net addition in EPF subscribers was nearly 10 lakh in August, after factoring out those who left in the month.  

EPFO, ESIC, employment scheme, social security scheme, jobs, employmentThe existing wage limit for coverage under the ESIC scheme is Rs 21,000 per month and Rs 25,000 per month in the case of persons with disability.

Nearly 9.3 lakh new members joined the ESIC-run social security scheme while nearly 6.7 lakh new subscribers joined the EPF scheme in August 2020. The number of new members in both schemes has significantly surged over the previous month. In July, nearly 7.5 lakh new members joined ESIC while around 6.5 lakh new subscribers joined the EPF scheme, according to the Ministry of Statistics & Programme Implementation. Taking together the new entrants and those who exited but returned, the net addition in EPF subscribers was nearly 10 lakh in August, after factoring out those who left.  

It is to be noted that the existing wage limit for coverage under the ESI scheme is Rs 21,000 per month and Rs 25,000 per month in the case of persons with disability. Also, the scheme is applicable to organisations employing 10 or more employees. On the other hand, the EPF scheme is a mandatory savings scheme that covers every establishment in which 20 or more persons are employed. 

The pay ceiling in this scheme is Rs15000 per month. Persons drawing pay above Rs 15,000 are exempted or can be enrolled with some permission or on a voluntary basis, said the ministry. However, the number of members subscribing to this scheme gives an idea of the level of employment in the formal sector. 

Also Read: NPAs may jump in next two quarters; concerns mount over retail, small biz loans, says Federal Bank MD

Meanwhile, in an effort to cover more workers under ESI Scheme, the government today said that the scheme has now been extended to Arunachal Pradesh for the first time. Employees in Arunachal Pradesh will be able to take benefit of the scheme from 1 November 2020. The ESI scheme is covering about 3.49 crores family units of workers and providing cash benefits and reasonable medical care to 13.56 crore beneficiaries, said the Ministry of Labour & Employment.

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