EPFO jobs data out, age group 18-35 hits highest payroll level in 8 months; Check out topper states
EPFO, which is assisted by the Central Board, administrates compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector of the country.
The government has released new payroll data of their flagship EPFO, NPS and ESIC institutions for the period of September 2017 to April 2018. In April 2018, government had released the first monthly payroll data from Sep’17 to Feb’18 as per the records of EPFO, NPS and ESIC. The latest data reveals that, as much as 4.13 million new payroll were generated from September 2017 to April 2018. This surge was due to highest payroll recorded in the month of April alone where it jumped by 6.3 lakh, the highest in any month since inception. EPFO which is assisted by the Central Board, administrates compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector of the country.
EPFO has also published industry-wise break-up and state-wise break-up of payroll data. The top 10 industries have around 88% share in total payroll of EPFO.
As per the data, a total 33,874 establishments remitted their first (Electronic Challan cum Return) data during Sep’17 to Apr’18 period. This number is the proxy for existing organisations that migrated from less than 20 jobs.
While total formalisation stood at 6.8 lakh for the period.
However, according to SBI Ecowrap, when we multiply the number of organisations with the EPFO cut-off / 20, this gives us the total payroll due to formalisation. This comes to 6.8 lakh. Hence, the new employment (excluding formalisation) during Sep’17-Apr’18 is 34.5 lakh (41.3 lakh net of 6.8 lakh). This gives us average formalisation of around 16.4%.
It added, “However, if we exclude the ECR numbers of Apr’18 (as the numbers are provisional) than the formalisation ratio is higher at 18%. Even for the sake of argument, we put this formalisation rate at 20%, the new payroll still counts at 33.0 lakh! This effectively puts to rest the fallacy of the continued debate of EPFO not being an employment data, and merely a reflection of formalisation!.”
SBI Ecowrap report says, “Additionally, when we juxtapose the state-wise share of 18-35 age group payroll share in total payroll with the young population (18-35 age), we find that both of the variables are positively correlated. This means that state where share of young population is higher than the payroll generated in age band of 18-35.
For example in Karnataka where young population share is 33.8%, share of payroll generate in 18-35 age band is 86%, vice-versa is true for Bihar.
Meanwhile, the NPS data came around 5.68 lakh PRAN generated (or new payroll) during Sep’17 to May’18 period, with an average generation of 63,152 per month. The NPS data are the final data and there is no subsequent revisions.