2 min read.Updated: 20 Oct 2020, 06:42 PM IST Written By Anulekha Ray
Net new enrolments with retirement fund body EPFO rose to 7.49 lakh in July and 10.06 lakh in August
The number of new subscriber joining the body, has increased from 6.48 lakh in July to 6.70 lakh in August, the payroll data showed
Around 20 lakh people joined the formal workforce in the first five months of FY21, the payroll data of the employees provident fund organization (EPFO) revealed Tuesday. To prevent the virus outbreak in the country, the central government imposed a nationwide lockdown in the last week of March. The national lockdown and the business loss due to the ongoing pandemic has hit the employment market significantly. "The provisional payroll figures for the month of July and August 2020 are indicative of the slow dissipation of the negative impact of the COVID-19 pandemic outbreak and gradual recovery to pre-COVID levels," the retirement body said.
Net new enrolments with retirement fund body EPFO rose to 7.49 lakh in July and 10.06 lakh in August. "The enrolment recovery pattern has further improved in August 2020 where net new additions are roughly 93% of the net growth in membership recorded in August 2019," the body said. "This is suggestive of return to normalcy regarding subscriber base growth for EPFO," it added.
The number of new subscriber joining the body,has increased from 6.48 lakh in July to 6.70 lakh in August, the payroll data showed. At least 5.81 lakh members had exited and then rejoined EPFO during August 2020, according to the latest figures. The exits from EPFO subscriber base declined by more than 50%, from 5.08 lakh in July to 2.46 lakh in August 2020, the retirement body said.
During August 2020, the maximum numbers of new additions were from the 22 to 25 years age bracket followed by 18 to 21 age bracket. "The 18-25 age-group have shown strong revival by contributing almost 51% of the new subscribers," EPFO said.
Maharashtra, Tamil Nadu, Gujarat, Karnataka and Haryana led the enrollment recovery cycle. These states added 57% of the total 21.40 lakh net new subscribers during June, July and August.
Expert services category (which primarily includes manpower agencies, private security agencies and small contractors) has been the most resilient as far as recovery is concerned, the EPFO data stated. "The category contributed a combined net payroll figure of 11.20 lakh for the month of June, July and August 2020, which is approximately 63% of the total net payroll for these three months for the top ten industry categories," according to data.
EPFO) is likely to credit the first instalment of the 8.5% interest to its subscribers by Diwali, according to a report by Live Hindustan. The EPFO central board in September said it will pay 8.5% interest to its subscribers for the year ended 31 March. The interest rate be divided into 8.15% and 0.35%. While the government-managed fund may transfer 8.15% interest by Diwali, the rest of the 0.35% is likely to be credited by December, according to reports.