EPFO Payroll Data Confirms Highest Monthly Job Growth in May Since 2018

India’s formal job market witnessed a major boost in May 2025, as per the latest EPFO (Employees’ Provident Fund Organisation) data released by the Ministry of Labour and Employment. The net payroll addition crossed 2 million in a single month — the highest since the EPFO started publishing such data in April 2018.

EPFO Sees Surge in New Job Seekers

The EPFO report highlights that 942,000 people joined the formal workforce for the first time in May, up from 849,000 in April. Among them, around 262,000 were women, while 680,000 were men.

A large portion of these new joiners were young individuals aged 18–25, with 873,000 additions in this age group — a 15.1% increase from April. The ministry noted that this trend reflects growing formal job opportunities for India’s youth.

Re-joining Members Boost EPFO Payroll

A significant contributor to the record numbers was the 1.61 million members who re-joined. These are individuals who switched jobs but chose to transfer their EPFO accounts instead of withdrawing funds. This not only extends their social security coverage but also helps in building long-term savings.

Female Participation on the Rise

The EPFO data also showed encouraging signs for gender inclusion. Net female payroll additions stood at 425,000, marking a 7.5% rise from April and a 15% increase year-on-year. This indicates stronger female entry into the formal workforce.

Sector-Wise and State-Wise Highlights

The services sector led the growth, with manpower suppliers adding 463,000 new jobs. Other contributors included expert services, security, textiles, garments, engineering, and finance.

Geographically, Maharashtra led with 20.3% of total net additions. Other top contributors included Karnataka, Tamil Nadu, Gujarat, Haryana, Delhi, Uttar Pradesh, and Telangana, each contributing over 5%.

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Conclusion

The EPFO payroll data for May 2025 signals strong growth in formal employment across sectors and regions. With rising youth employment, increased female participation, and more workers preserving their EPFO accounts, the trend points to a healthier and more inclusive formal job market in India.

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