Government sources report that the Employees' Provident Fund Organisation (EPFO) has expanded significantly, adding approximately 62 million members in the last six years. In May 2024 alone, 1.9 million new registrations were recorded.
Officials indicate that the Ministry of Labour is in talks with industry stakeholders to boost employment opportunities. Plans include increasing the minimum EPFO pension and implementing new labor laws, although no timeline has been set for these changes.
The EPFO recorded 1.95 million net new members in May 2024, with about 985,000 being first-time additions. During the 2023-24 fiscal year, over 13 million net subscribers joined EPFO, reflecting a year-over-year growth of 19.62%.
The surge in new memberships is attributed to increased job opportunities, growing awareness of employee benefits, and effective outreach programs by EPFO. Sectors like expert services, construction, garment manufacturing, textiles, engineering, commercial establishments, beedi making, and electronic media saw the highest member additions.
In her budget speech, Finance Minister Nirmala Sitharaman announced a package to boost employment and skill development, aiming to benefit 41 million youth over five years. This scheme targets first-time employees in the formal sector registered with EPFO, offering one-month wages (up to Rs. 15,000) in three installments.
Additionally, the government will provide incentives to both employees and employers, with benefits based on EPFO contributions during the first four years of employment. Employers will receive Rs. 3,000 per month for two years for each additional employee earning up to Rs. 1 lakh per month.
Latest Updates:
BUDGET LIVE: Govt Unveils Major Initiatives to Boost Education, Employment, and Agriculture
ITR Filing Deadline Nears: How the New Tax Regime Affects Your Tax Liability
New Capital Gains Tax Structure: FM Sitharaman Explains Modi 3.0 Government's Strategy