NEW DELHI: India’s formal employment ecosystem appears to be regaining strength despite global economic headwinds, as new data from the Employees’ State Insurance Corporation (ESIC) and the Employees’ Provident Fund Organisation (EPFO) show steady payroll expansion powered mostly by younger workers.
The latest ESIC payroll report for October 2025 and the EPFO payroll release of September 2025 together paint a picture of an economy that, while still adjusting to post-pandemic realities, is creating jobs with social security coverage at a sustained pace. The data also signal a critical structural shift, the growing participation of youth in formal employment.
ESIC’s consolidated payroll figures from FY 2017–18 to FY 2024–25 show insured employees rising from 2.9 crore to nearly 3 crore, a clear sign of labour formalisation. Around 70% of contributors belong to the 22–35 age group, while the over-35 segment grew from one crore to 1.2 crore, suggesting improving job continuity. Men continue to dominate enrolment (around 80%), but women’s share at roughly 20% reflects gradual gender inclusion.
The data indicates that more Indians now hold stable, salaried jobs with access to health insurance and provident fund savings. This shift is particularly striking given the pandemic-induced contraction in 2020–21, when ESIC contributors fell by about 30 lakh. The rebound since has been sharp: 1.5 crore new contributors in 2021–22 and 1.7 crore in 2022–23, marking a rapid recovery in employment-linked social security coverage.
Monthly data through August 2025 show roughly three crore contributors on ESIC rolls, with 16–20 lakh new registrations each month. Nearly 70% of these begin contributing immediately, while 20–30 lakh contributors exit each month due to job changes, resignations, or crossing the Rs 21,000 salary ceiling.
The 22–25 and 26–28 age groups dominate new registrations, underscoring the influx of young workers into formal employment. EPFO numbers reflect a similar trajectory.
Net new provident fund subscribers grew from 15.5 lakh in 2017–18 to nearly 1.3 crore in 2024–25. While the pandemic year (2020–21) saw net additions dip to 77 lakh, the following years rebounded sharply — 1.22 crore in 2021–22 and 1.39 crore in 2022–23.
Between April and July 2025, monthly net additions averaged 1.7–2.1 million, with the 22–25 age group accounting for about a third of new subscribers and the 18–21 bracket another significant share.
Major industrial and service hubs — Maharashtra, Karnataka, Tamil Nadu, Gujarat, Haryana, Delhi, and Telangana -- contributed more than two-thirds of all new EPF enrolments, highlighting the regional concentration of formal employment opportunities.