EPFO is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. At present, it maintains more than 15 cr. accounts pertaining to its members. EPFO is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. At present, it maintains more than 15 cr. accounts pertaining to its members.
It manages the accounts of over 6 cr. members and a corpus of over Rs 10 lakh cr. earlier this year; the EPFO had started the practice of updating payroll data estimates earlier.
India has, for the first time, introduced monthly payroll reporting for the formal sector to facilitate analysis of new and continuing employment. The payroll data, categorized age-wise, for the months September 2017 to February 2018 has been released on 25th April 2018. The numbers from these three organizations are an eye opener and put an end to all speculations and conjectures regarding job creation in the economy. They also strengthen the efforts made by the Government on job creation and formalization of the economy. There are other organizations also, such as ICAI, Bar Council, Medical Council and other professional bodies which could have such monthly data for payroll reporting for their professionals.
The Employees’ Provident Fund Organization (EPFO), Employees’ State Insurance Corporation (ESIC) and the Pension fund Regulatory and Development Authority (PFRDA) have released payroll data. According to the payroll data released last month from September to April, as many as 4,126,138 new members were enrolled for its social security schemes to provide benefits, including provident fund, insurance, and pension. Retirement fund body EPFO’s payroll data suggests that as many as 4,474,859 jobs created during September 2017 to May this year.
From the PFRDA, the New Pension Scheme (NPS) data indicates generation of 4.2 lakh new payroll during the given period, that too only from Tier-I account. NPS currently manages the corpus of around 50 lakh employees in State and Central government. For this study, the Central and State autonomous bodies have been shown under Central and State governments respectively, while non-government refers to the corporate sector employees.
From the above two organizations itself, 35.3 lakh new payrolls were generated during this six month period.
In addition, the ESIC data also mirrors the payroll growth shown in the other two sets of data from EPFO and PFRDA. Since ESIC data is not Aadhar seeded there is a further scope of some modifications. However, the retirement body lowered earlier estimate of new member’s enrolment by 9.57 percent, from 4,126,138 to 3,731,251 for September 2017-April this year.
According to the latest data released, the new members’ enrolment in May is the highest so far in the last eight month at 7,43,608. During May, the maximum number of enrolment of 2, 51,526 were recorded in the age bracket of 18 to 21 years followed by 1,90,090 in 22 to 25 years age group. The payroll data statement says that the data is provisional as the updating of employees record is a continuous process and gets updated in subsequent months.
It also stated that the estimates may include temporary employees, whose contributions may not be continuous for the entire year. For each age-wise band, the estimates are net of the members enrolled and ceased during the month as per the EPFO records.