The Employees’ State Insurance Corp. (ESIC) welcomed 2.30 million new employees in May 2024. This marks a significant 14 per cent increase compared to the same period last year, according to provisional payroll data.
Administered by the Labour Ministry, ESIC provides social security benefits through monetary insurance to registered employees under the Employees’ State Insurance Act,1948. The scheme offers financial aid for health-related events that may result in wage loss.
The data revealed that 48 per cent of these new enrolled individuals were under 25 years old, and nearly 20 per cent were women.
The latest figures also show a significant month-on-month increase, with nearly 40 per cent more people joining the scheme compared to April. Additionally, the number of new establishments offering ESIC coverage grew by 8.7 per cent from the previous month.
Recent EPFO data shows a surge in new provident fund enrolments by over 40 per cent to more than 13 million in FY22 as the country emerged from the pandemic. However, job creation slowed significantly, with only a 15 per cent increase in FY23 and a mere 3.5 per cent in FY24.
This data release coincides with Finance Minister Nirmala Sitharaman’s presentation of the Union Budget for FY25, which emphasised employment and skilling. The budget includes five new schemes with a total outlay of Rs 2 trillion over the next five years to address the country’s employment situation, alongside Rs 1.48 trillion allocated for education, employment and skilling.
As part of the prime minister’s package, the government plans to introduce three new schemes featuring an employment-linked incentive (ELI) model. These schemes will focus on enrolling new employees in the Employees’ Provident Fund Organisation (EPFO), recognising first-time employees, and supporting both employees and employers. Employers will be reimbursed up to Rs 3,000 per month for two years for each additional employee hired, aiming to create 5 million new jobs.
Additionally, Rs 10,000 crore has been allocated for a New Employment Generation Scheme, reflecting a renewed focus on job creation following a slowdown in employment growth post pandemic.