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EPFO Adds 17.9 Lakh Members In June: Learn About The Scheme And Benefits

The Employees’ Provident Fund Organization (EPFO) has added 17.9 lakh members in June. Explore the EPF benefits and how they can secure the subscribers financial future

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Outlook Money
August 23, 2023
EPFO Higher Pension Deadline

EPFO Higher Pension Deadline

The Employees’ Provident Fund Organization (EPFO) announced that 17.89 lakh members have joined the EPFO scheme in June this year. The EPFO data shows that around 3,491 entities have extended the EPFO social security to their workforce, an impressive 9.71 per cent growth in net enrollment than in May 2023, it said on August 20, 2023.

In addition, 57.87 per cent of new members are aged 18 to 25, highlighting the surge in youth entering the organised workforce. Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Haryana lead in new EPFO additions, with Maharashtra taking the lead at 20.54 per cent.

These states collectively contributed 60.40 per cent of the total net membership increase, adding 10.80 lakh members during the assessed month.

“Payroll data suggests that approximately 12.65 lakh members exited but rejoined EPFO. These members switched their jobs and re-joined the establishments covered under EPFO and opted to transfer their accumulations instead of applying for final settlement thus, extending their social security protection,” EPFO said.

The participation of new female members in the organized workforce has reached its highest point in the past 11 months. According to EPFO, the net addition of female members in June stands at around 3.93 lakh, the highest since August 2022.

EPFO data also indicates a substantial growth in members working across sectors like trading-commercial establishments, building & construction, electrical, mechanical, and general engineering segments. Textiles, financing establishments, schools, and hospitals also followed suit. Notably, approximately 40.36 per cent of the total net membership comprises expert services, encompassing manpower suppliers, contractors, security services, etc.

Learn About The EPF Scheme And Benefits

Employees provident fund (EPF) contributions are mandatory for salaried individuals. Individuals can save up to 12 per cent of their monthly salary, matched by an equal contribution from employers under the EPF scheme. While employees contribute 12 per cent to Employees Provident Fund (EPF) account, only 3.67 per cent of the employer’s share goes to the EPF account, and 8.33 per cent to the Employees Pension Scheme (EPS).

EPF benefits include accumulated savings and interest accessible at retirement, resignation, or in the case of demise. For FY2022-23, EPFO raised the interest rate to 8.15 percent from the previous 8.10 per cent. Partial withdrawals are also allowed for financial needs like home construction, education, marriage, and medical expenses. Even if an employee’s basic monthly salary is over Rs 15,000, the maximum pensionable salary considered while calculating pension will be Rs 15,000 per month.

EPS offers monthly benefits on superannuation or retirement. The pension sum is based on average salary during the preceding 12 months from the date of exit and total employment years. EPS also promises a minimum pension on disablement.

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