EPFO net payroll additions surge 43% in June

By: |
Updated: August 22, 2019 7:04:01 AM

As per the EPFO data, the highest percentage rise was in the age brackets of above 26 years with month-on-month increase of 54%, while the rise was lower at 35% for those below 26 years of age. 

payroll, EPFO, Employee Provident Fund Organisation, economy news, ESIC, When your passive income exceeds your active income, you are financially free.

Reversing a month-on-month fall in May, the net employment generation in the formal sector grew 42.8% in June over the previous month, according to the latest payroll data of the Employees’ Provident Fund Organisation (EPFO). However, the Employees’ State Insurance Corporation (ESIC) reported a 5.3% decline in net addition in June, compared with the previous month.

The EPFO showed a net addition of 12,23,675 employees in June this year, compared with 8,56,870 in May. The ESIC reported a net addition of 12,19,501, against 12,88,140 in the previous month. The estimates of the EPFO and the ESIC are not additive, as there are elements of overlap. These data give different perspectives on the levels of employment in the formal sector and do not measure employment at a holistic level, according to government officials.

As per the EPFO data, the highest percentage rise was in the age brackets of above 26 years with month-on-month increase of 54%, while the rise was lower at 35% for those below 26 years of age.

Additions in younger-age brackets are largely associated with new jobs while those in older age bracket reflects change of jobs or formalisation of employment by companies.

The retirement fund, EPFO, has more than 6 crore active members (with at least one month contribution during the year) while medical care provider ESIC has about three crore members.

Do you know What is Wholesale Price Index (WPI), Public Debt, Finance Commission Grants & Other Transfers, Economic Survey, State Finance Commission? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.