Government to Boost Employment with New EPFO Initiatives

The EPFO added 6.2 crore members in six years with 19 lakh new registrations in May 2024. Government aims to discuss boosting employment with industry and raising EPFO pension. New labor laws are being considered without a set timeline. Finance Minister's package targets skilling for 4.1 crore youth.

The Employees' Provident Fund Organisation (EPFO) has seen significant growth, adding approximately 6.2 crore members over the past six years, as reported by government officials to ANI. In May 2024 alone, the EPFO registered 19 lakh new members. Officials indicated that the ministry plans to engage in discussions with industry leaders to bolster employment opportunities across the country, with new guidelines to be developed following these consultations.

Further discussions are underway to increase the minimum EPFO pension from the current Rs 1000. Government officials are also exploring new labor laws, although no specific timeline has been set for their implementation.

Recent EPFO data revealed that 19.50 lakh net members were added in May 2024, including 9.85 lakh new additions. Over the fiscal year 2023-24, more than 1.3 crore net subscribers joined EPFO. The 9.85 lakh new additions represent the highest figure since the EPFO began issuing payroll data in April 2018, reflecting a year-over-year growth of 19.62% in net member additions.

This increase is attributed to rising employment opportunities, greater awareness of employee benefits, and the effectiveness of EPFO's outreach programs. The organization highlighted that industries such as expert services, construction, garment making, textiles, engineering products, trading, commercial establishments, beedi making, and electronic media saw the highest member additions.

In her budget address, Finance Minister Nirmala Sitharaman announced the Prime Minister's employment and skilling package. This initiative aims to provide employment and skill opportunities to 4.1 crore youth over five years. Targeting first-time employees in the formal sector registered with EPFO, the scheme will offer a one-month wage (up to Rs. 15,000) in three instalments. It will also incentivize both employees and employers for hiring first-time employees, with benefits tied to EPFO contributions during the initial four years of employment. Employees earning up to Rs 1 lakh monthly will be eligible.

Additionally, the government will support employers by reimbursing Rs. 3,000 per month for two years for each additional employee with a salary up to Rs. 1 lakh per month. (ANI)

(With inputs from agencies.)