Retirement fund body EFPO and new pension system (NPS) data revealed addition of 5.2 crore payrolls, including 47 per cent fresh jobs, in the last four years, said a recent SBI study.
Since April 2018, the government has been releasing monthly payroll data (EPFO, NPS and ESIC) based on the recommendation given by Ghosh and Ghosh in the study titled, "Towards a Payroll Reporting in India".
"If we analyse the EPFO payroll data trends for the last four years, net new EPF subscriber addition during FY20 to FY23 was 4.86 crore," said the recent SBI's research report 'Ecowrap'.
This number, however, consists of new payroll (first payroll), second payroll (rejoined/resubscribed members) and formalised payrolls.
"We subsequently estimated the net new payroll (first job/fresh job) adjusted for re-joined/re-subscribed members and formalization (based on ECR data).
"As per our calculation, the actual net new payroll was 2.27 crore during FY20 to FY23. The first job is 47 per cent of the total net new payroll," said the report authored by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
According to the report, the second job (or the exited members who re-joined and re-subscribed) stood at 2.17 crore during the four-year period ended FY23.
"Increase in formalisation was at 42 lakh in these years, is also a good news," the report said.
It further said the first quarter EPFO payroll data of 2023-24 reveals the trend is quite encouraging.
Already 44 lakh net new EPF subscribers joined, of which first payroll were 19.2 lakh.
"If this trend continues for the whole fiscal then in FY24, the net new payroll cross the 160 lakh mark (highest-ever) with first payroll in the range of 70-80 lakh," it said.
The research report further said NPS data indicates that 8.24 lakh new subscribers added in 2022-23, of which state government payrolls of 4.64 lakh, followed by non-government of 2.30 lakh and 1.29 in central government.
In the last 4-years, around 31 lakh new subscribers joined in NPS.
"So, cumulatively, total payroll generation of EPFO and NPS is more than 5.2 crore during FY20 to FY23," it said.
Ecowrap stressed that a policy may also be framed to mandatorily recruit at least 30 per cent of the total workforce as women Banking Correspondents, particularly in locations where access and usage of the accounts by women is low.
This, it said, will clearly bridge the gender gap.
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