Why did new subscriber addition to EPFO decline by over 4% in 2023-24? Govt replies

The Union government on Monday attributed the decline in new Employees’ Provident Fund Organisation (EPFO) subscribers in 2023-24 to the normalisation of registrations following a backlog from the Covid-19 pandemic years.

In a written reply to the Lok Sabha, Union labour and employment minister Mansukh Mandaviya poined to the "consistent addition" of over one crore new subscribers in EPFO year on year even as the numbers declined in 2023-24.

The addition of new EPFO subscribers declined by 4.4% to 1.09 crore in 2023-24 compared to 1.15 crore in 2022-23.

"While on one hand, the higher number of EPF subscribers in 2022-23 can be attributed to the backlog of registration in EPFO during 2020-21 and 2021-22 due to COVID-19, on the other hand, it shows the recovery of the economic activities in the post-COVID period," Mandaviya said.

According to EPFO data, the number of new subscribers increased significantly after the pandemic, from 85.48 lakh in 2020-21 to 1.08 crore in 2021-22. However, the growth rate has moderated since.

In the first half of the current financial year (April-September 2024), EPFO has already added 61.46 lakh new subscribers, which accounts for 56% of the total new additions in 2023-24.

On the question of any specific measures taken by the government to address its impact of economic slowdown and job losses on EPFO membership, the minister said, "To boost economy and increase employment generation, the Government has announced Employment Linked Incentive Scheme in Union Budget 2024-25, based on enrolment in the EPFO."

Separately, the government informed Parliament that as many as 17.49 lakh EPFO members have applied to contribute based on their actual (higher) basic pay instead of the threshold of ₹15,000 per month to secure higher pensions.

Minister of state for labour and employment Shobha Karandlaje said these applications were made after the Supreme Court’s November 2022 ruling, which allowed existing employees to opt for a higher pension under the EPS, 1995.

"In implementation of the judgement on November 4, 2022 passed by Supreme Court, an online facility was provided by EPFO, wherein total 17.49 lakh applications for Validation of Option/Joint Options were successfully submitted by the applicants," Karandlaje said.