FORMALIZING
ECONOMY : ECONOMY
NEWS:
The Transition of India's Economy Towards Formalization
WHAT’S
IN THE NEWS?
India’s economic formalization is shifting workers to
formal jobs with benefits like job security and social protections through
EPFO. Rising EPFO registrations reflect increased workforce stability and
inclusion, particularly for youth and women.
Formalization
of the Economy and EPFO’s Role
Formalization of Economy: Transitioning workers from
informal to formal employment with job security, contracts, and social
benefits, enhancing workforce stability and economic inclusion.
Benefits of Formalization:
Employee’s Provident Fund Organisation (EPFO):
Indicators of Increased Formalization:
EPFO Data Insights (up to July 2024):
·
6.91 crore members joined from 2017 to
2024.
·
1.38 crore new members joined in 2022-23,
showing formalization growth.
·
June 2024 data: job switching with fund
transfers, youth and female participation.
·
Monthly increase in registrations, with 20
lakh new members in July 2024.