The data revealed by the Employee Provident Fund Organization (EPFO) is a tight slap on the face of liberals, opposition and paid media who always keep on questioning Modi Government about where are jobs? What jobs Modi Government has created in these four years? Here is answer to all their questions and baseless allegations!!!
The Employees Provident Fund released provisional figures for six months that showed 3.11 million workers joined the fund during the September 2017 to February 2018 period, partly due to a pick up in the economy and federal support.
“The data shows there was a good increase in jobs every month in the last six months which will now help fill the missing link for policy-making,” said Soumya Kanti Ghosh, chief economist at the country largest lender, the State Bank of India.
The data on payrolls released on Wednesday represented India added 472,075 employees to the state-run social security fund in February, and 604,557 in January giving a guide to how many new jobs are being created in the non-farm sector. The payroll count is essentially the difference between the number of workers who joined and exited from the EPFO’s fold and as such is the net addition to jobs.
The provisional figures released by the EPFO for six months showed 3.11 million workers joined the workforce in the formal sector during September 2017-February 2018. On a pro-rata basis, this would mean that 6.22 million additional jobs were created in 2017-18. “It has now been decided to publish the age-band wise estimate of all new subscribers as declared by their employers. This data can be helpful in policymaking, planning and research work as the planners may have an idea as to what is the estimate of employees in different age band,” the Ministry of Labour and Employment said in a press statement.
A majority – over 57 per cent – of the new enrolments was in the age group of 18-25 years in February 2018. Workers over 35 years of age constituted around 15 per cent of net addition to the payroll. One significant trend observed from the payroll estimates is that there was a consistent dip in the payroll for workers belonging to the age group of less than 18 years and 18-21 years since November last year. The payroll addition of workers belonging to these age groups was the lowest in February in the last six months.
This is the first-ever month-wise estimates on payroll count released by a government agency in India. The EPFO manages social security funds of workers in the organised and the semi-organised sector and it has 60 million members with active contribution at present. However, the payroll database by EPFO will cover firms, employing more than 20 workers, which are required to mandatorily make provident fund contributions, at present though the government plans to amend the rules so that companies with 10 or more employees have to open an account with the fund for their workers.
Apart from this Modi Government has also announced the state would partially cover employers’ contributions to the EPF for three years in order to bring more of the vast workforce into the organised sector. The government has said it will cover an amount up to 12 percent of employees’ salaries.
In a bid to boost employment, the government has also relaxed labour laws to let companies hire workers on a fixed term basis, while raising social security benefits for them.
The new data would definitely help Prime Minister Narendra Modi to slam critics that raised questions on his government. The promises made before the 2014 election for stronger jobs growth are being kept and the economic growth of India is increasing.