EPFO Hits Historic High with 20.06 Lakh Net Members Added in May 2025

146
22 Jul 2025
5 min read

News Synopsis

The Employees’ Provident Fund Organisation (EPFO) has recorded its highest net member addition in a single month since it started publishing data in April 2018. A total of 20.06 lakh new members joined EPFO in May 2025, indicating a strong rise in formal employment across India.

This remarkable figure shows a 4.8% increase from April 2025 and a 2.8% rise compared to May 2024, underlining the ongoing momentum in job creation and economic revival.

Government’s Response

In a post on X, Union Minister Mansukh Mandaviya celebrated the development, stating:

“India’s employment engine powered by PM Modi’s reforms breaks all records! EPFO Records an All-Time High Net Member Addition in May 2025. Under the dynamic leadership of Hon’ble PM Shri @narendramodi ji, India’s formal employment ecosystem is witnessing unprecedented growth. This historic surge reflects the success of pro-youth, pro-worker policies and the government’s unrelenting push towards ease of doing business and economic empowerment.”

Youth and New Joiners Lead the Employment Boom

Major Spike in Young Workforce (18–25 age group)

Out of the total new enrollments, 9.42 lakh subscribers joined Employees’ Provident Fund Organisation (EPFO) in May, an 11% surge from April. Significantly, 5.60 lakh new joiners were in the 18 to 25 age bracket, constituting nearly 60% of the new additions. This segment also saw a 14.5% month-over-month and 15.1% year-over-year rise in net addition, reflecting increased hiring of fresh graduates and first-time job seekers.

More Women Join the Workforce

May 2025 also witnessed a notable jump in female participation, with 2.62 lakh women joining EPFO — 7.1% more than April. The net addition of female members stood at 4.25 lakh, showing a 7.5% monthly growth and a 15% increase compared to May 2024. This aligns with the ongoing efforts to boost women’s participation in the formal economy.

Members Returning to Formal Jobs on the Rise

Increase in Rejoining Members

A promising indicator of job continuity and stability, 16.11 lakh members rejoined EPFO in May 2025 — a 2.1% increase from April and 14.3% growth compared to the same month last year. This shift also suggests that more employees are transferring their PF accounts rather than withdrawing funds, showing growing trust in the formal job ecosystem.

Regional Employment Trends

60% of New EPFO Members Come from Top States

A state-wise analysis shows that nearly 60% of new members came from just five states and union territories, with Maharashtra alone contributing 20%. Other key contributors included:

  • Karnataka

  • Tamil Nadu

  • Gujarat

  • Haryana

  • Delhi

  • Uttar Pradesh

  • Telangana

These states continue to drive formal employment through strong industrial and service sector growth.

Industry-Wise Breakdown of New Additions

Expert Services Dominate Job Additions

From an industry perspective, expert services, especially manpower supply agencies, led the employment surge, contributing nearly 45% of net additions — with manpower suppliers accounting for over half of this sector’s growth.

Other sectors showing significant gains in employment:

  • 🧵 Textiles

  • 🧼 Cleaning services

  • 🛠️ Engineering products

  • 💰 Financial services

  • 👚 Garment manufacturing

Conclusion: Formal Employment in India on a Strong Trajectory

The latest EPFO data for May 2025 offers a strong indicator of India's expanding formal employment sector. The historic net addition of 20.06 lakh members not only marks a record since data tracking began in April 2018 but also reflects the impact of progressive government policies aimed at boosting job creation. 

The sharp rise in new enrollments, especially among youth aged 18–25 and women professionals, highlights the increasing inclusion and vibrancy of India’s workforce. Moreover, the surge in rejoining members suggests better job continuity, with more workers opting to stay within the formal economy rather than exiting it.

Contributions from states like Maharashtra, Karnataka, Tamil Nadu, and Gujarat demonstrate regionally balanced growth, while sector-wise performance—led by expert services and manufacturing—reinforces economic diversification. Overall, the data underlines a resilient and reform-driven employment ecosystem that is evolving in line with India's broader development and economic empowerment goals.

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