The July new-subscriber number is higher than the monthly average of 2020-21 by around 27% and on a par with the 2019-20 average, though lower than the previous 2 years’ averages. The monthly averages of net subscriber addition in 3 years starting 2018-19 have been in the range of 5-6.5 lakh.
The employees’ provident fund (EPF) scheme saw net subscriber addition of 14.65 lakh in July, higher than a revised figure of 11.2 lakh in June and just 6.6 lakh in May, according to the provisional data released by the EPF organisation (EPFO).
As many as 9 lakh new members were added to the scheme in July, while 9.4 lakh rejoined and just 3.8 lakh exited.
Of course, the provisional EPFO payroll data is subject to sharp revisions, so no hasty conclusions could be drawn from it (net addition number in June was previously reported as 12.8 lakh). Yet, in keeping with drive to formalise the work drive via assorted incentives, the EPFO base has been expanding in recent years.
The July new-subscriber number is higher than the monthly average of 2020-21 by around 27% and on a par with the 2019-20 average, though lower than the previous 2 years’ averages. The monthly averages of net subscriber addition in 3 years starting 2018-19 have been in the range of 5-6.5 lakh.
EPFO arrives at the net number deducting the total of the subscribers’ who exited from the sum of new subscribers and those who left earlier but rejoined during the period.
Since April, 2018 EPFO has been releasing payroll data covering the period September 2017 onwards. “This (more people rejoining the scheme and lesser exists) shows that majority of subscribers opted to continue their membership with EPFO, by transferring their past accumulations from previous job to the current PF account rather than applying for final withdrawal,” the government said in a statement.
Under the provident fund subsidy scheme-Atmanirbhar Bharat Rojgar Yojana (ABRY)— first announced on November 12, 2020, as part of the Atmanirbhar Bharat Package 3.0, the Centre provides provident fund subsidy in respect of new employees engaged on or after October 1, 2020.
The window has recently been extended by 9 months till March 30,2022. Under ABRY, the Centre is crediting for a period of two years both the employees’ and employers share’ (24% of wages) or only the employees’ share (12% of wages), depending on the strength of EPFO registered establishments.
