EPFO Registrations: Gen Z Accounts for 79% of New Sign-Ups in FY26, Report Finds

Young workers are driving the formalisation of India's economy, with Generation Z accounting for 79 percent of all new Universal Account Numbers generated under the Employees' Provident Fund Organisation in FY26, according to a new report by workforce solutions provider Quess Corp. Women made up nearly 28 percent of these new registrations, the report found, pointing to a significant demographic shift in the country's organised labour force. Titled 'Pulse FY2026: Shaping India's Workforce Future', the report drew on EPFO subscriber data, the Periodic Labour Force Survey and industry employment datasets to track hiring trends across the formal sector.

Young Cohorts Dominate Entry-Level Hiring

Of the more than 57,000 new UANs analysed in FY26, workers aged 18 to 30 formed the overwhelming majority, with the 21 to 25 age group alone contributing over 35 percent of all new registrations, signalling a wave of first-time job seekers entering formal employment. This builds on a trend already visible in FY25, when workers aged 18 to 25 made up 59 percent of new subscribers. Entry-level hiring remained concentrated in high-volume services and operational roles, with retail, e-commerce, logistics, staffing and customer support emerging as the biggest sources of early-career jobs. EPFO Advance Rules: Check Withdrawal Limits for Illness, Education, Marriage and Housing.

Apprenticeships And Tier-II, Tier-III Hiring On The Rise

Employers have leaned on apprenticeship programmes to bridge the gap between education and industry needs, with around 64,000 contracts facilitated under the National Apprenticeship Promotion Scheme. The automotive sector led adoption, accounting for over 51 percent of total apprenticeship placements, while women secured roughly 26 percent of these opportunities, broadly in line with their 28 percent share of new EPFO registrations. EPFO EEC 2026: One-Time Chance to Regularise Workers Left Out of PF Coverage.

The report also found that formal employment is spreading well beyond India's major metros, with nearly 69 percent of the workforce analysed based in Tier-II and Tier-III cities, reflecting growth in regional manufacturing hubs, fulfilment centres and decentralised back-office operations.

Education Levels Among New Workers Are Rising

The influx of young workers has come alongside higher educational attainment at entry level, with 96 percent of new formal workers having completed at least Class 10, 61 percent having finished Class 12 or higher, and 30 percent holding a graduate or postgraduate degree.

Lohit Bhatia, Executive Director and Group CEO of Quess Corp, said the scale of young people entering India's formal workforce marks a defining shift for employers and the economy. "As this new generation enters the world of work, the focus must move beyond hiring to building employability," he said, adding that apprenticeships are proving to be one of the most effective pathways into formal jobs by giving young workers industry-relevant skills and practical experience.

How EPFO Membership Works

Under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, EPFO membership is tied to employment in registered establishments, and direct individual enrolment is not allowed. Mandatory enrolment applies to employees earning a basic salary plus dearness allowance of up to INR 15,000 per month, with contributions matched by employer and employee under statutory rules. While there is no upper age limit to join the provident fund, workers aged 58 and above are no longer eligible to contribute to the Employees' Pension Scheme.

(The above story first appeared on LatestLY on Sep 13, 2026 12:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).