Number of companies registered in EPFO decreased by 31 thousand, Clear signs of increasing unemployment
EPFO : Coronavirus infection has caused a huge injury to the employment of people. This is being confirmed by the data coming constantly. A Mint news report said that there has been a huge reduction in the number of business establishments registering for EPFO in October. It has decreased by 30,800 in October as compared to September. This means that employment is not increasing. The EPFO manages the PF of the employees. It is clear from these figures that companies are not able to recover from the corona infection and because of this, they are constantly removing employees from jobs.
Contribution to pension fund also reduced
Mint reported quoting EPFO data that in September the number of registered companies in EPFO was 5,04,044 but in September it was reduced to 5,34,869. This is the first time since May. Things were improving after May but it declined in October. The number of EPF members has also come down. Now less people are contributing to the EPF. Mint figures showed that the number of contributors to the pension fund declined by 18 lakhs as compared to September. In September, their number was 476.9 lakhs but in October it came down to 458.3 lakhs. According to Mint, the number of people who contributed to EPF had decreased in April. In fact, there was a decrease in EPF members after the loss of jobs in large numbers. However, some people stopped contributing to the EPF after the salary cut.
Companies are not contributing to PF to reduce costs
Analysts believe that it is clear that the condition of the economy is poor due to this major decline in registered companies in EPFO. But it also shows that companies are facing very difficult. It is being said that some companies are giving jobs but are not contributing to the PF. They are not cutting the PF of employees to reduce costs.