Employment Trends in Formal Sector: October 2024 Payroll Statistics Released by MoSPI

The full report, Payroll Reporting in India: An Employment Perspective – October 2024, is available for public access.

The Ministry of Statistics & Programme Implementation (MoSPI) has released its latest employment-related statistics in the formal sector for October 2024. The data, drawn from subscriber information under the Employees’ Provident Fund (EPF) Scheme, Employees’ State Insurance (ESI) Scheme, and National Pension Scheme (NPS), provides insights into the nation’s formal employment landscape. The full report, Payroll Reporting in India: An Employment Perspective – October 2024, is available for public access.

Key Highlights of Employment Data:

1. Employees’ Provident Fund (EPF) Scheme

October 2024: 7,50,058 new subscribers were added, marking a decline from 9,87,988 in September 2024.

Insight: The decline indicates a slowdown in formal job creation in sectors contributing to EPF, potentially reflecting broader economic trends or seasonal employment fluctuations.

2. Employees’ State Insurance (ESI) Scheme

October 2024: 12,93,076 employees registered and began contributing under the ESI scheme, a drop from 15,09,736 in September 2024.

Insight: The ESI scheme covers employees in small and medium enterprises (SMEs) and industries with a focus on health insurance. The decrease could indicate a temporary contraction in employment or changes in hiring patterns in relevant sectors.

3. National Pension Scheme (NPS)

October 2024: NPS recorded an increase in new contributors, with 64,977 subscribers joining, up from 58,018 in September 2024.

Insight: The growth in NPS enrollment reflects a positive trend in long-term retirement planning and increased participation in formal pension schemes.

Additional Insights and Context:

Year-to-Date Trends: Cumulative data from earlier months suggests fluctuating patterns in employment generation, influenced by economic activity, sectoral demand, and policy changes.

Sectoral Contributions: Manufacturing, IT, and service sectors remain significant contributors to EPF and ESI enrollments, while public sector undertakings and large corporate employers drive NPS subscriptions.

Economic Implications: The rise in NPS enrollments amid declines in EPF and ESI registrations could indicate a shift toward formal retirement benefits among professionals or changes in workforce composition.

The MoSPI’s payroll reporting initiative underscores the importance of real-time data in analyzing formal sector employment trends and devising targeted policy interventions. The report serves as a crucial tool for policymakers, researchers, and economists to assess the employment landscape and respond effectively to emerging trends.