Over three million jobs were added to the formal economy in six months, the first-ever estimate of payroll count based on Employees’ Provident Fund Organisation (EPFO) subscription database shows, Business Standard has reported.
Payroll count, the difference between the number of workers who joined and left the EPFO, indicates the net addition to jobs over a given period.
According to the data released by the EPFO, 3.11 million workers joined the fund during the September 2017 to February 2018 period.
While over 57 per cent of the new enrollments in February 2018 were in the age group of 18-25 years, workers over 35 years of age formed around 15 per cent of net addition to the payroll. The payroll addition of workers belonging to the age group of less than 18 years and 18-21 years was the lowest in February.
“Definitely some jobs are being created. The last few months of a financial year are never really a recruiting time, if you are looking at the organised sector. Also, people may exit during the end... That is why February figures might be throwing a lower number," said CARE Ratings’ Chief Economist Madan Sabnavis.
The release of the first-ever month-wise estimates on payroll count comes after a study conducted by State Bank of India Chief Economic Advisor Soumya Kanti Ghosh and Indian Institute of Management Bengaluru professor Pulak Ghosh in January. According to the study, seven million jobs were created in 2017-18.
Currently, it is mandatory for employers with 20 or more workers to contribute to the EPF. The Modi government may soon amend the rules so that firms with even 10 or more staff are required to open EPF accounts.
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