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Formalization of jobs gathers pace
February 28, 2022
Even as the economy recuperates from the pandemic affected, a process of formalization of jobs is gaining traction again. New subscriptions to the two key social security frauds EPFO and ESIC grew by 41% and 71%, respectively, in December over the lows seen in May 2021, when the second wave of the pandemic disrupted economic activities, according to figures.
The surge in these subscriptions bears out the fact that the process of formalization of jobs and the larger economy hasn’t plateaued yet.
Of course, the EPFO numbers undergo sharp revisions. But it is clear that registrations under both the schemes gathered pace in 2021-22 after the decline witnessed in 2019-20.
The latest payroll report bought out by the ministry of statistics & program implementation showed as many as 9.11 lakh new subscribers joined the retirement benefits schemes in December 2021 run by the EPFO, compared with 8.73 lakh in the previous month. The numbers are even better for the ESIC.
New registration under the EPFO gathered unprecedented speed in 2016 as the government started bearing the cost of EPF contribution by employers for employees earning up to ₹15,000 per month.
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