Atmanirbhar stimulus for EPFO in post-Covid times

The Economic Survey points to a rise in formalisation of employment, and increase in net addition to EPFO payroll post Covid-19, noting that the majority share of this growth came from the youth.

The net addition to Employees’ Provident Fund subscriptions during FY22, the survey said, was 58.7% higher than in FY21 and 55.7% higher than that in the pre-pandemic year 2019. Net average monthly subscribers added under retirement fund EPFO also increased from 8.8 lakh in April-November 2021 to 13.2 lakh in the same period of 2022.

“The swift rebound of formal sector payroll addition can be attributed to the Atmanirbhar Bharat Rojgar Yojana, launched in October 2020 to boost the economy, increase employment generation in the post Covid-19 recovery phase, and incentivise creation of new employment along with social security benefits and restoration of employment lost during the pandemic” the survey said. It noted that the share of self-employment increased while that of regular wage/salaried workers declined in both rural and urban areas

Referring to the Annual Survey of Industries 2019-20, the Economic Survey also said employment in the organised manufacturing sector maintained a steady trend, with employment per factory increasing gradually as well. The data suggested that employment rose faster in factories employing more than 100 workers than in smaller ones, suggesting scaling up of manufacturing units.