Early five crore new subscribers joined Employees' Provident Fund (EPF) scheme between September 2017 and October 2021, the government data showed on Friday. According to data released by the National Statistical Office, 4,79,72,153 new subscribers joined the EPF scheme during September 2017 - October 2021.
During the same period, 5,82,56,595 new subscribers joined Employees' State Insurance (ESI) scheme and 30,23,250 new subscribers joined and contributed in the National Pension Scheme (NPS), as per the 'Payroll Reporting in India: An Employment Perspective - October, 2021' report. These figures give perspective on the levels of employment in the formal sector.
EPF is a mandatory savings scheme under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. It is managed under the aegis of Employees' Provident Fund Organization (EPFO).
It covers every establishment in which 20 or more persons are employed. The number of members subscribing to the EPF scheme gives an idea of the level of employment in the formal sector.
ESI Scheme is an integrated social security scheme tailored to provide socio-economic protection to the workers in the organised sector and their dependents, in contingencies, such as sickness, maternity and death or disablement due to an employment injury or occupational hazard.
The ESI scheme is governed by the Employees' State Insurance Act, 1948.
It is applicable to non-seasonal, manufacturing establishments (other than a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a railway running shed) employing 10 or more workers. For health and medical institutions, the threshold limit is 20 or more workers.
The wage ceiling is Rs.21,000 per month. Subscribers are termed as Insured Persons (IP) and a new IP number can also arise due to a change in employment. The number of subscribers of the ESI scheme also gives an idea of the level of employment in the formal sector.
"Data is sourced from Employees' State Insurance Corporation (ESIC) and the information may have an element of duplication with EPF data and is thus not additive," the report noted. The National Pension Scheme (NPS) is an easily accessible, low-cost, tax-efficient, flexible and portable retirement account.
Under the NPS schemes for the Government sector, the individual contributes to his retirement account and also his/her employer co-contributes for the social security/welfare of the individual. The NPS scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
(With inputs from ANI)
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