Surging EPFO Subscribers: A Sign of Formalisation

The Employees’ Provident Fund Organisation (EPFO) plays a vital role in securing the financial well-being of crores of organised and semi-organised sector employees across India. In recent years, EPFO experienced a remarkable increase in its subscriber base, underscoring a significant trend towards the formalisation of the Indian economy. Between financial years (FY) 2021-22 and 2022-23, […]

by Damini Mehta - May 26, 2023, 1:47 pm

The Employees’ Provident Fund Organisation (EPFO) plays a vital role in securing the financial well-being of crores of organised and semi-organised sector employees across India. In recent years, EPFO experienced a remarkable increase in its subscriber base, underscoring a significant trend towards the formalisation of the Indian economy. Between financial years (FY) 2021-22 and 2022-23, new subscribers that joined the Employees’ Provident Fund (EPF) increased by 5.8 per cent from 1.08 crores in FY22 to 1.15 crores in FY23. This records the largest increase in new subscribers joining the social security organisation in a year since FY19.
The increase in the EPFO’s membership is being attributed to a number of factors, such as the growth of the organised sector in India, the government’s focus on formalising the economy and increasing awareness of the benefits of social security. This article delves into the data and facts behind the surge in EPFO subscribers, encompassing gender, age, and occupational breakdowns while shedding light on how this upswing signifies the ongoing formalisation process.