New payroll additions rise to a 3-month high as curbs ease
New Delhi: New payroll additions in June were at a three-month high at 810,661, hinting at a recovery in the employment market with the ebbing of the second wave of the covid-19 pandemic, showed fresh provisional data released on Friday.
June reported at least 191,000 more new payroll additions in India’s formal workforce than in May, when the country saw a massive spurt in covid-19 cases leading to the imposition of localized restrictions by most states. According to the Employees’ Provident Fund Organization (EPFO) data, new payroll additions were at 619,051 in May and 763,312 in April.
Of the new payroll additions or new EPF subscribers added in June, 450,000 were in the 18-25 age group, followed by 139,478 in the 35-plus age group, showed EPF data. “With respect to payroll data, the impact of the second wave waned during June 2021, leading to tremendous growth in… payroll additions compared to April and May 2021,” the labour ministry-run EPFO said.
The net payroll additions were 1.28 million, the retirement fund manager said. Net payroll additions are arrived at by taking into account fresh additions, the number of exits, and those who rejoined the workforce after leaving the system. Economists and experts trust monthly new payroll additions as it fluctuates less than net additions.
True to the expectation of economists, EPFO revised the net payroll additions for April and May downwards on Friday. Earlier, EPFO data had showed that April 2021 recorded 1.1 million net additions, but this was revised downward to 970,235. Similarly, net payroll additions in May were revised downwards to 774,809 from the 920,000 shown in July.
State-wise comparison of payroll data shows that Maharashtra, Haryana, Gujarat, Tamil Nadu, and Karnataka are still leading payroll additions with around 778,000 net subscribers. “This is around 60.61% of total net payroll addition across all age groups,” EPFO said.
The payroll data is provisional and the numbers for June may change.
“Of the total 12.83 lakh (1.28 million) net subscribers added during the month, around 8.11 lakh (811,000) members have come under the social security coverage of the Employees’ Provident Fund Scheme for the first time. During the month, around 4.73 lakh (473,000) net subscribers exited but rejoined EPFO by changing jobs within the establishments covered by EPFO. This shows that the majority of subscribers opted to continue their membership with EPFO, transferring of funds from the previous job to the current PF account rather than applying for final withdrawal of their PF accumulations,” EPFO said.
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