Formal job creation in India slowed down in August after remaining buoyant for the last four months across the Employees’ Provident Fund Organisation, the Employees’ State Insurance Corporation and the National Pension Scheme.
The provisional payroll data released by the ministry of statistics and programme implementation on Tuesday shows net new subscriber addition under EPFO fell by 7.1% in August at 1.69 million compared to 1.82 million in July, 1.83 million in June, 1.68 million in May and 1.53 million in April.
ESIC also registered a decline of 8% in net subscriber addition in August at 1.46 million compared to 1.58 million in July, 1.56 million in June, 1.51 million in May and 1.28 million in April.
Even the NPS witnessed a marginal dip of 0.71% at 65,543 as against 66,014 in July, 58,425 in June, 60,926 in May and 64,569 in April.
Year-on-year comparison, however, shows an increase in formal jobs created this year compared to August 2021, which was the period of the abating second wave of the pandemic. Formal jobs created under the Employees’ Provident Fund Organisation in August this year were 14.4% higher compared to 1.48 million added in August 2021.
Net new subscriber addition under ESIC in August this year is 10.5% more than 1.32 million new subscribers added in last August while NPS registered an increase of 16.3% as against 56,827 new enrollments in August 2021.
Out of the total 1.69 million net subscribers added during the month, around 0.98 million new members have been enrolled under the social security cover of EPF & MP Act, 1952 for the first time, it said.
Approximately 0.71 million net subscribers exited but re-joined EPFO by transferring their accumulations from previous PF account to the current PF account, instead of claiming for final withdrawal.
As per the report, 1.18 million male subscribers were added to ESIC while 0.28 million female subscribers were added to ESIC in August.
Under NPS, the highest number of subscribers added in August was at the state government level at 40,902 followed by the corporate sector at 15,502 and the least were added by the central government at 9,139.
The NSO report is based on the payroll data of new subscribers of various social security schemes run by ESIC, the Employees’ Provident Fund Organisation (EPFO) and Pension Fund Regulatory and Development Authority (PFRDA). It has been releasing such data of these bodies since April 2018, covering the period starting from September 2017.
The report said since the number of subscribers is from various sources, there are elements of overlap and the estimates are not additive.
NSO also said the report gives different perspectives on the levels of employment in the formal sector and does not measure employment at a holistic level.