The Employee Provident Fund assists the Central Board of Trustees in administering three schemes—EPF Scheme1952, Insurance Scheme(EDLI) and, Pension Scheme(EPS) for the workforce engaged in the nation’s organized sector. Also, a retirement body has, over the years, taken various initiatives for the benefit.
As per the net payroll data of the retirement fund body, there was around 29% more compared with 2018-19, an estimated 79 lakh new members got registered with the Employees Provident Fund Organisation (EPFO). An estimated 61.12 lakh new subscribers joined the retirement scheme in 2018-19. Estimates are the net of members newly enrolled, exited, and rejoined during the period.
The Employee Provident Fund Organization (EPFO) said that the data of net new subscribers is based upon Universal Account Number (UAN) generated in the system, and where the first non-zero subscription as received.
The data is provisional as updating of employee records is a continuous process, EPFO said. They also said that, estimates include temporary employees whose contributions may not be continuous.
In March, a total of 5.72 lakh net new members were registered with the retirement fund body, its fourth-lowest during the year. The number was 10.34 lakh, its highest in February.
Only 3.10 lakh net new subscribers joined in May and that was the lowest enrollment. In February, the number was 10.34 lakh, its highest.
Since, April 2018, the EPFO has been releasing the age-wise payroll data, covering data from September 2017. The net new enrollment was 15.53 lakh between September 2017 and March 2018.
The social security funds of workers in the organized and semi-organized sector in India are managed by the EPFO and it has more than 6 crore active members (with at least one-month contribution during the year).
The government of India has announced a reduction in the statutory Employee Provident Fund contribution requirement from 24% of basic salary and dearness allowance to 20% for the next three months. A lower contribution will be leading to a lower retirement corpus as EPFO relies heavily on compounding to create a nest that can help individuals manage their living costs post-retirement. Also, the EPFO has removed the penalty for delay in EPF deposits by employers.
