Lockdown saw 27 lakh exiting EPF scheme during April-June
Tribune News Service
New Delhi, February 25
The Covid-19 induced lockdown and restrictions not only devastated employment avenues in the unorganised sector but also dealt a blow to job indicators in the formal sector.
11 lakh added in first quarter
7.37L subscribers exited in April last year
9.30L subscribers opted out in May 2020
9.98L exited in june; 11 lakh added
The first signs of formal employment recovery emerged in July 2020 when new EPF subscriber numbers started rising
New sets of government data mapping employment in the formal sector have revealed that almost 1 million Employees Provident Fund (EPF) subscribers exited the system every month through April, May and June 2020 when the aftermath of the Covid lockdown was most pronounced.
The economic activity started picking up thereafter peaking in September last when more than a million new subscribers joined the EPF, which is one of the principal government schemes indicating formal employment trends.
The subscribers exiting the system started witnessing a decline since July 2020, once the economic activity picked up and pain inflicted by restrictions eased.
“Payroll reporting in India: An Employment Perspective” document finalised today showed continuous stress on EPF subscriptions in the first quarter of 2020-21 when almost 2.7 million (27 lakh) employees ceased to subscribe to EPF contributions. While in April last year 7.37 lakh subscribers exited the EPF contribution net, the number rose to 9.30 lakh in May 2020 and 9.98 lakh in June last.
During the first quarter of this fiscal when 2.7 million exited EPF subscriptions only 1.1 million new subscribers were added. The number of new EPF subscribers was 1.92 lakh in April last followed by 3.25 lakh in May and 5.72 lakh in June last. The first signs of formal employment recovery emerged in July 2020 when new EPF subscriber numbers started rising and the numbers of those ceasing to pay their contributions began to plummet. September 2020 saw a major jump of 11.65 lakh new EPF subscriptions as against 7.39 lakh ceasing to pay their contribution.
The formal job sector recovery sustained growing trends thereafter with 7.89 lakh new subscribers joining in October 2020 and December 2020 witnessing 8.04 lakh new subscriptions. Subscribers exiting the EPF scheme was down to 6.29 lakh in October with a further drop in December when only 2.95 lakh subscribers ceased to make their EPF contribution. From April to December, 59.68 lakh new subscribers joined and 64.95 lakh left.
