EPFO Says Subscriber Base Growth Data For Aug Suggests "Return To Normalcy"

A statement released by the Ministry of Labour & Employment on Tuesday said that provisional payroll data published by EPFO shows that the retirement body's subscriber base increased by around 20 lakh during the first five months of the financial year 2020-21.

The Employees' Provident Fund Organisation (EPFO) administers the Employees' Provident Fund (EPF).

"The provisional payroll figures for the month of July and August 2020 are indicative of the slow dissipation of the negative impact of the COVID-19 pandemic outbreak and gradual recovery to pre-COVID levels," it said.

Around 7.49 lakh net new subscribers were added in July 2020, a 64% increase from the same month of the previous year.

"The enrolment recovery pattern has further improved in August 2020 where net new additions are roughly 93% of the net growth in membership recorded in August 2019. This is suggestive of return to normalcy regarding subscriber base growth for EPFO," the ministry said.

In terms of month-on-month growth, there was a 34% increase in net new subscribers recorded in August 2020 compared to July.

The higher subscriber base growth seen in the month of August is on account of the increased number of new subscribers and lower exits by members, the ministry said adding that new subscribers joining has increased from 6.48 lakh in July to 6.70 lakh in August.

Additionally, the exits from the EPFO subscriber base declined by more than 50%, from 5.08 lakh in July to 2.46 lakh in August.

Around 5.81 lakh members had exited and then rejoined EPFO during August 2020. "These subscribers have switched jobs within the establishments covered by EPFO and choose to retain their membership by transferring funds rather than opting for final settlement. The data published comprises of all the new members who have joined during the month and whose contribution has been received," the ministry said.