EPFO Achieves Record Payroll Addition of 20.06 Lakh in May 2025

The data underscores the strengthening of India’s formal job market and the growing awareness around social security benefits among the country’s working population.

The Employees' Provident Fund Organization (EPFO) has set a new benchmark in India’s formal employment landscape by reporting its highest-ever net payroll addition of 20.06 lakh members in May 2025, according to provisional payroll data released by the organization. This figure marks a month-on-month growth of 4.79% compared to April 2025 and a year-on-year increase of 2.84% over May 2024. The data underscores the strengthening of India’s formal job market and the growing awareness around social security benefits among the country’s working population.

Government Lauds Historic Milestone

Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya, lauded the milestone, stating:

“The EPFO has recorded an all-time high net member addition in May 2025, a testament to the growing strength of India’s formal employment landscape. This historic achievement is the direct result of Hon’ble Prime Minister Shri Narendra Modi’s visionary leadership and the government’s unwavering commitment to pro-youth, pro-worker reforms. Our focus on ease of doing business and economic empowerment is yielding tangible outcomes, and we remain dedicated to building a robust and inclusive labour ecosystem for a Viksit Bharat.”

Key Trends and Highlights from the May 2025 Payroll Data

Surge in New Subscribers: Employment Expansion Evident

• EPFO enrolled approximately 9.42 lakh new subscribers, an 11.04% rise over April 2025.

• This growth indicates a notable expansion in employment opportunities and highlights the effectiveness of EPFO’s outreach campaigns promoting employee welfare and UAN enrollment.

Youth Lead the Way: 18–25 Age Group Dominates

• Of the new subscribers, 5.60 lakh (59.48%) belonged to the 18–25 age group, suggesting a large influx of first-time job seekers entering the organized workforce.

• Net payroll addition for this age group reached 8.73 lakh, growing 15.10% over April 2025 and 0.11% year-on-year.

This trend aligns with India’s demographic dividend and emphasizes the role of schemes aimed at skilling and youth employment under Skill India, Startup India, and Make in India.

Rejoining Workforce: Strengthening Long-Term Security

• Approximately 16.11 lakh members rejoined EPFO in May 2025 after exiting earlier—a 2.12% monthly and 14.27% annual growth.

• These members opted to transfer their accounts instead of withdrawing funds, indicating greater awareness and commitment to long-term financial planning and social security continuity.

Significant Uptick in Female Participation

• 2.62 lakh new female subscribers joined EPFO in May 2025, up 7.08% from April 2025.

• Net female payroll addition reached 4.25 lakh, marking a 7.54% monthly and 15.04% annual increase.

This growth reflects enhanced inclusivity in the formal workforce, with women’s representation improving steadily, supported by focused government initiatives such as Maternity Benefit (Amendment) Act, Mahila Shakti Kendras, and flexible work policies in various sectors.

State-wise Contribution: Maharashtra Tops the List

• The top five states/UTs—Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Haryana—accounted for nearly 60% of net payroll additions.

• Maharashtra alone contributed 20.33% of the month’s net addition, followed closely by other industrially advanced states.

Other significant contributors include Delhi, Uttar Pradesh, and Telangana, each adding over 5% of the total net payroll.

Industry-Wise Insights: Services and Manufacturing on the Rise

Payroll additions showed robust growth in employment within:

• Expert Services (44.61% share of net additions)

• Textiles

• Garment Manufacturing

• Electrical, Mechanical & General Engineering

• Cleaning & Sweeping Services

• Financial Services

Breakup Within Expert Services:

Category	Net Payroll Addition
Manpower Suppliers	4,62,735
Miscellaneous Activities	1,09,234
Security Services	97,172
Normal Contractors	87,378
Expert Services (Unclassified)	1,38,294
Total	8,94,813

The dominance of manpower supply, security, and contract-based services reaffirms the rising demand for flexible workforce deployment, while the growth in manufacturing segments like textiles and garments signals a recovery in labor-intensive industries.

Data Methodology and Continuity

Since April 2018, EPFO has been publishing monthly payroll data covering periods from September 2017 onward. The net monthly payroll includes:

• New members joining via Aadhaar-validated UANs.

• Exits from EPFO coverage.

• Members who rejoined after exiting.

The data remains provisional, subject to continuous updates due to delayed or revised ECR (Electronic Challan-cum-Return) filings and late reporting of exits.

Towards a Stronger, Inclusive Labour Market

May 2025’s payroll data is a clear indicator of India’s resilient formal employment sector, rising youth participation, and improving female labor force inclusion. The steady increase in new and rejoining subscribers highlights the positive impact of labor reforms, digital facilitation, and outreach initiatives. As the government continues to align economic and social goals with its vision for Viksit Bharat @2047, EPFO remains a pivotal institution securing the workforce’s future.