EPFO data gives Modi govt big boost, says 44.75 lakh jobs created in 9 months

The latest data from retirement fund body EPFO suggests that as many as 44.75 lakh jobs were created between September 2017 and May 2018 in the organised sector. The payroll data released by the Employees’ Provident Fund Organisation (EPFO) states that 7.43 lakh new members were enrolled in the month of May as compared to 6.76 lakh in April this year. 
 
Enrolment numbers in May are the highest so far at 7,43,608, and of these, the highest number of 2,51,526 was recorded in the age group of 18 to 21 years, followed by 1,90,090 in the age group of 22 to 25 years, said the Ministry of Statistics & Programme Implementation Central Statistics Office in a release published on its website.
 
The Ministry brought out the first release of employment-related statistics in the formal sector in April, 2018 covering the period September 2017 to February, 2018, using information on the number of subscribers who availed benefits of social security schemes like EPFO, Employees’ State Insurance Scheme (ESIC) and the National Pension Scheme (NPS).
 
According to the statement, new enrolments in the month of March, February and January this year were 3.68 lakh, 4.42 lakh and 4.98 lakh respectively.
 
The Employees Provident Fund (EPF) scheme is the main plan under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 managed under the EPFO. It covers every establishment where 20 or more persons are employed, besides covering such organisations where the number of employees is less than 20.
 
EPF is a mandatory savings scheme. The pay limit is Rs 15,000 per month. Persons drawing pay above Rs 15,000 are exempted or can be enrolled with some permission or on a voluntary basis. The number of members subscribing to this scheme gives an idea of the level of employment in the formal sector. 
 
Meanwhile, a parliamentary panel has asked the government to frame strong guidelines for giving exemptions to establishments for managing provident funds of their employees through trusts with a view to keeping a check on misuse of such funds.
 
There were no clear guidelines for such exempted establishments to keep unclaimed deposits and some of them could be using them as their working capital, the panel said in a report that was tabled in Parliament yesterday.

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Notably, analysts are of the view that the latest figures would help Prime Minister Narendra Modi to defend his record on employment generation ahead of the Lok Sabha elections due in 2019.