Home Business EPFO, ESIC Data Show Pickup In Job Creation In Formal Sector; Check Details

EPFO, ESIC Data Show Pickup In Job Creation In Formal Sector; Check Details

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EPFO, ESIC Data Show Pickup In Job Creation In Formal Sector; Check Details

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Job creation in the formal sector has picked pace during April-June 2022 on the back of economic recovery, according to official payroll data. The Employees’ Provident Fund Organisation’s (EPFO) new subscribers jumped about 40 per cent year-on-year in the June 2022 quarter and nearly 30 per cent in June.

The new subscribers under the Employees’ State Insurance Corporation (ESIC) during the first quarter of 2022-23 rose 45 per cent and and increased 48 per cent in June, indicating a pickup in employment generation. ESIC is applicable to non-seasonal manufacturing establishments employing 10 or more workers with a wage ceiling of Rs 21,000 per month.

The ESI Scheme for India is an integrated social security scheme tailored to provide socio-economic protection to the workers in the organized sector and their dependents, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or occupational hazard. The wage ceiling is Rs.21000/- per month. Subscribers are termed as Insured Persons (IP) and a new IP number can also arise due to change in employment. Employees may cease to pay contribution due to wage exceeding the statutory ceiling of Rs 21,000 per month or owing to resignation, death, retirement or dismissal. The number of subscribers of this scheme also gives an idea of the level of employment in the formal sector.

India’s GDP grew 4.1 per cent in the fourth quarter of the financial year 2021-22. For the full financial year 2021-22, the GDP saw a growth of 8.7 per cent. The economic growth had witnessed a contraction of 6.6 per cent in the previous financial year 2020-21. The gross domestic product (GDP) had expanded by 2.5 per cent in the corresponding January-March period of 2020-21. The economy had witnessed a growth of 5.4 per cent in the December 2021 quarter.

“Real GDP or gross domestic product (GDP) at constant (2011-12) prices in the year 2021-22 is estimated to attain a level of Rs 147.36 lakh crore, as against the First Revised Estimate of Rs 135.58 lakh crore for the year 2020-21, released on 31.01.2022. The growth in GDP during 2021-22 is estimated at 8.7 per cent as compared to a contraction of 6.6 per cent in 2020-21,” an official statement had said.

However, the share of subscribers under the National Pension System dropped 0.4 per cent y-o-y in the June 2022 quarter and by 25 per cent in June. The National Pension System (NPS), a government-sponsored pension scheme, was launched in January 2004 for government employees only. It was later opened to all sections in 2009. In December 2011, the government also included corporate employees, including state-owned companies, under the system.

For the past five years, the official data showed that during September 2017-June 2022, about 5.60 crore new subscribers joined the EPF scheme.

During the period, new subscriber addition under the ESI scheme was 6.92 crore. In the same period, the NPS (including government and corporate schemes) saw a total addition of 36.5 lakh subscribers, according to the data from the Ministry of Statistics & Programme Implementation.

“The present report gives different perspectives on the levels of employment in the formal sector and does not measure employment at a holistic level,” the MoSPI said.

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