MoSPI reports mixed employment trends in Nov 2024; EPFO membership grows; ESI, NPS registrations fall

The Ministry of Statistics and Programme Implementation (MoSPI) has reported a mixed trend in formal sector employment for November. While the number of new Employees' Provident Fund Organisation (EPFO) members increased compared to the previous month, new registrations under the Employees’ State Insurance (ESI) scheme and subscriptions to the National Pension Scheme (NPS) recorded a decline in the same period, as stated in a report released by the MoSPI on Friday.

The EPFO witnessed an uptick in new subscribers, with 8,74,420 individuals joining in November, compared to 7,86,196 in October. This rise points to a positive trajectory in formal employment opportunities, as per the report.

Conversely, the ESI scheme experienced a drop in registrations, with 11,82,501 new employees contributing in November, down from 13,07,888 in the preceding month. A similar decline was observed in the NPS, which recorded 40,920 new contributors in November, compared to 64,977 in October, the report stated.

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These figures reflect the fluctuating dynamics of formal sector employment, as captured through payroll reporting based on contributions to these key government-backed social security schemes.

The number of new additions to the NPS have seen a decline month-on-month since April, with marginal surges in September and October, MoSPI data showed. The data also showed that November was the worst month for new additions to the NPS. New subscribers in April were over 110,000, more than twice the number of new subscribers in November, as per the report.

Peak in May, July

New ESI scheme registrations peaked in May and July but have been declining since. Registrations started at 1.22 million in April and rose sharply to 1.74 million in the following month. They remained above 1.6 million each month until July but began falling in August, which recorded 1.52 million new registrations.

Under the EPFO, contributions are made by both employers and employees, and the funds grow tax free. Upon retirement or leaving employment, members can withdraw their accumulated funds, which can be used for various purposes like buying a house or starting a business.

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While the ESI scheme also involves contributions from both employees and employers, it is designed to provide social security benefits to employees in certain industries. These benefits include medical care, maternity benefits, and disability benefits in times of need.

The NPS is a retirement savings scheme that encourages long-term savings for retirement. Contributions to the pension fund can be made by individuals, including those in the unorganized sector. These collections are invested in various asset classes, and the scheme offers tax benefits.

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