EPFO Data FY26: India’s workforce is witnessing a significant generational change, with Gen Z emerging as the biggest contributor to new formal employment. According to enrolment data from the Employees’ Provident Fund Organisation (EPFO), people from the Gen Z age group accounted for 79% of new Universal Account Numbers (UANs) generated during FY2026.
The figures were highlighted in Quess Corp’s latest workforce report, ‘Pulse FY2026: Shaping India’s Workforce Future’. The report suggests that younger workers are increasingly becoming the driving force behind India’s expanding formal employment ecosystem.
The analysis draws on information from the EPFO, Periodic Labour Force Survey (PLFS), industry sources, publicly available datasets, industry reports and broader macroeconomic indicators.
Gen Z Leads New EPFO Enrolments
More than 57,000 new UANs were generated during FY2026, and employees between the ages of 18 and 30 accounted for 79% of these new registrations, according to the report.
Among young workers who are likely entering formal employment for the first time, the 21-25 age group accounted for more than 35% of new UANs. This made them the largest individual age cohort joining India’s formal workforce.
The trend was also visible in the previous financial year. In FY2025, around 59% of new EPFO subscribers were aged between 18 and 25. The year-on-year increase of 20% highlights the growing contribution of younger workers to the country’s organised employment sector.
Retail, E-Commerce and Logistics Become Key Entry Points
Several sectors are playing an important role in helping young Indians move into formal employment.
According to the Quess report, retail, e-commerce, logistics, services and staffing continue to serve as major entry points for first-time workers.
With a growing number of young people entering organised employment, companies are increasingly focusing on programmes that can make the transition from education to the workplace smoother.
These include apprenticeships, job-ready training, employability programmes and technology-driven recruitment.
Apprenticeships Gain Importance
The report highlighted the growing importance of apprenticeships in preparing young workers for employment.
Nearly 64,000 apprenticeship contracts were facilitated through the National Apprenticeship Promotion Scheme (NAPS).
The automotive industry accounted for more than 51% of all apprenticeship contracts, making it the largest contributor among the sectors covered by the report.
Apprenticeships allow young people to gain practical workplace exposure while developing skills that are relevant to specific industries.
Women Make Up Nearly 28% of New UANs
Women are also making a growing contribution to India’s formal workforce.
According to the report, women accounted for approximately 28% of new UANs generated during FY2026.
Women received around 26% of apprenticeship contracts, indicating their increasing participation in structured employment and skill-development opportunities.
Tier-II and Tier-III Cities Drive Employment Growth
India’s formal employment expansion is no longer limited to major metropolitan areas.
The report found that nearly 69% of the workforce is deployed across Tier-II and Tier-III cities.
This highlights the growing importance of emerging economic centres in India’s organised employment landscape. As businesses expand beyond major cities, smaller urban centres are becoming increasingly important sources of talent.
India’s Organised Workforce Is Becoming More Educated
The educational profile of India’s organised workforce is also changing.
According to the FY2026 report:
- 96% of workers have completed at least Class 10.
- 61% have completed Class 12 or higher.
- 30% hold graduate or postgraduate qualifications.
The figures point towards rising educational attainment among workers. At the same time, employers are placing greater emphasis on digital skills, employability and workplace readiness while hiring talent.
‘Focus Must Move Beyond Hiring to Building Employability’
Lohit Bhatia, Executive Director and Group CEO of Quess Corp, said the large-scale entry of young people into India’s formal workforce represents an important change for both employers and the wider economy.
He emphasised that simply creating jobs is not enough and that greater attention needs to be given to developing employability.
According to Bhatia, apprenticeships can provide an effective route into formal employment by helping young workers develop industry-specific skills, practical experience and confidence needed to build long-term careers.
For employers, such programmes can also provide an opportunity to develop future-ready talent from the beginning of a worker’s career.
EPF Account Rules: Who Can Become a Member?
The EPFO states that an employee becomes an EPF member only when the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 applies to the organisation where they are employed.
An individual cannot independently enrol in the EPF. Membership is obtained through employment with an establishment covered under the EPF & MP Act.
Therefore, employees working for an establishment that does not come under the Act generally cannot join the EPF through direct application.
Is There an Age Limit for EPF Membership?
There is no specific age restriction for becoming an EPF member.
However, an employee who has already reached the age of 58 years cannot become a member of the pension fund under the applicable provisions.
EPF Eligibility Based on Salary
Employees whose basic wages plus Dearness Allowance (DA) are up to ₹15,000 per month are eligible for EPF membership and continue to remain subscribers even if their salary later crosses the ₹15,000 threshold.
However, in such cases, the contribution is generally restricted to the ₹15,000 wage ceiling, with the employer making the corresponding contribution.
Employees earning more than ₹15,000 per month can also opt to become EPF members under Para 26(6) of the EPF Scheme. The required option must be submitted to the EPF office within six months of joining, subject to the applicable rules.
What Does the EPFO Data Mean for India’s Workforce?
The latest EPFO enrolment figures point to a clear transformation in India’s formal employment market. Young workers, particularly Gen Z, are increasingly entering organised employment, while sectors such as retail, logistics, e-commerce and services are providing important opportunities for first-time job seekers.
At the same time, the rise of apprenticeships, higher educational qualifications and greater demand for digital and job-ready skills suggests that employers are increasingly looking beyond simply filling vacancies.
The next phase of India’s workforce growth could therefore depend not only on creating more formal jobs but also on building a skilled, adaptable and future-ready workforce.