Fri. Mar 29th, 2024
Jobspire and JustCode

India added 472,075 employees to the state-run social security fund in February, after adding 604,557 in January, new data on payrolls released on Wednesday showed, giving a guide to how many new jobs are being created in the non-farm sector.

The Employee Provident Fund released provisional figures for six months that showed that 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 new data could help Prime Minister Modi deflect criticism that promises made before the 2014 election for stronger jobs growth were not being kept despite the fastest economic growth of any major economy.

To bring more of the vast workforce into the organized sector, Modi this year announced the state would partially cover employers’ contributions to the EPF for three years.

The government says it will cover an amount up to 12 percent of employees’ salaries.

Critics say the new data overestimates job creation in the organised sector as many workers, who were working on a contract with same companies, were added to the fund due the state incentives.

It is mandatory for employers and employees of companies with 20 or more workers to contribute to the EPF, 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.

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