Net payroll addition cruises after falling for two months, shows data

Formalisation of the economy gathered pace in December, after dipping in October and November in the current fiscal year. Net payroll addition rose to 12.5 trillion in December from 8.7 trillion in the previous month.

Net payroll addition or net addition to the subscriber base of employees’ provident fund (EPF) in December was, however, a bit less than the September number when the lockdown was lifted from most areas. Many consider net  payroll addition an indicator of job creation, but there is an overlap between EPF, National Pension System, and Employees’ State Insurance Corporation numbers.  There are multiple changes in EPF numbers so it is better to consider it as formalisation of the economy.