EPFO FY25: 59% of new subscribers aged 18–25, youth lead formal jobs surge
Synopsis
Nearly 6 in 10 new EPFO subscribers in FY25 were between 18 and 25 — and in FY26, 79% of fresh UANs went to those under 30. India's demographic dividend is showing up in provident fund data, but the Quess Corp report's real warning is buried in the numbers: hiring is surging, but employability investment is not keeping pace.
Key Takeaways
59 per cent of new EPFO subscribers in FY25 were aged 18–25 , according to the Quess Corp workforce report.
In FY26 , 79 per cent of more than 57,000 new UANs belonged to individuals aged 18–30 ; the 21–25 cohort was the largest single group at over 35 per cent .
Nearly 64,000 apprenticeship contracts were facilitated under NAPS , with the automotive sector accounting for over 51 per cent .
Women represented 28 per cent of new UANs and 26 per cent of apprenticeship contracts in FY26.
69 per cent of the organised workforce is deployed in tier 2 and tier 3 cities .
96 per cent of the organised workforce has completed at least Class 10 ; 30 per cent hold graduate or post-graduate degrees.
Nearly 59 per cent of all new Employees' Provident Fund Organisation (EPFO) subscribers in FY25 belonged to the 18–25 age group, signalling a decisive shift in the composition of India's formal workforce, according to a workforce report released on Wednesday, 19 August. The data underscores the accelerating entry of young Indians into organised employment at a scale not seen before.
Youth Dominate New UAN Registrations
The trend is even more pronounced in the current fiscal year. Of more than 57,000 new Universal Account Numbers (UANs) generated during FY26, 79 per cent belonged to individuals aged 18–30. Within that cohort, the 21–25 age group alone accounted for over 35 per cent of all new UANs — making it the single largest segment entering formal employment, according to Quess Corp's latest workforce report.
Women are also making measurable inroads: they accounted for nearly 28 per cent of new UANs generated during FY26, while 26 per cent of apprenticeship contracts were awarded to women — a figure that, while growing, still points to a significant gender gap in formal employment uptake.
Apprenticeships Emerge as a Critical Pipeline
Nearly 64,000 apprenticeship contracts were facilitated under the National Apprenticeship Promotion Scheme (NAPS), with the automotive sector leading the way, accounting for over 51 per cent of all such contracts.
Lohit Bhatia, Executive Director and Group CEO of Quess Corp, said the influx of young workers demands a strategic response from employers. 'The scale at which young people are entering India's formal workforce marks a defining shift for both employers and the economy. As this new generation enters the world of work, the focus must move beyond hiring to building employability,' he said.
Bhatia further noted that apprenticeships offer a structured pathway for translating demographic scale into economic productivity. 'For employers, they offer a way to develop future-ready talent from day one. As India's workforce continues to evolve, strengthening apprenticeships and industry-led skilling will be critical to unlocking the full potential of our demographic dividend,' he added.
Tier 2 and Tier 3 Cities Drive Organised Employment Growth
The geographic spread of formal employment is also shifting. According to the report, nearly 69 per cent of the organised workforce is now deployed across tier 2 and tier 3 cities, highlighting the growing role of emerging economic centres beyond the traditional metros.
This is a notable structural development — it suggests that formalisation is not merely an urban-metro phenomenon but is spreading into smaller cities, potentially aided by digital onboarding infrastructure and the expansion of manufacturing and logistics hubs in these regions.
A More Educated Workforce Entering Formal Jobs
The educational profile of new entrants is also improving. The report found that 96 per cent of the organised workforce had completed at least Class 10, while 61 per cent had completed Class 12 or above. A notable 30 per cent held graduate or post-graduate qualifications — a sign that formal employment is increasingly attracting educated youth who may previously have sought informal or self-employment.
This combination of youth-led EPFO growth, rising apprenticeship uptake, and geographic diversification of formal jobs points to a structural deepening of India's organised economy — one that will require sustained skilling investment to translate demographic numbers into productive outcomes.
Point of View
But it demands a harder look. A surge in UAN registrations among 18–25-year-olds reflects entry into formal employment, not necessarily quality employment — wages, retention, and social security compliance among smaller NAPS-linked employers remain poorly tracked. The automotive sector's dominance of apprenticeship contracts (over 51 per cent) also reveals a concentration risk: if that sector slows, the apprenticeship pipeline narrows sharply. The 69 per cent tier 2 and tier 3 deployment figure is the most structurally significant data point in the report, yet it receives the least analytical attention — it suggests that India's formalisation is quietly decentralising, with implications for infrastructure, skilling policy, and regional wage dynamics that policymakers have not yet fully mapped.
NationPress
19 Aug 2026
Frequently Asked Questions
What does the EPFO data say about young workers in India?
According to the Quess Corp workforce report, nearly 59 per cent of all new EPFO subscribers in FY25 were aged 18–25, making youth the dominant cohort entering India's formal economy. In FY26, 79 per cent of more than 57,000 new UANs generated went to individuals aged 18–30.
What is a Universal Account Number (UAN) and why does it matter?
A Universal Account Number is a 12-digit identifier assigned to every EPFO member, enabling portability of provident fund accounts across jobs. A rise in new UANs is a direct indicator of growth in formal employment, as it means more workers are being enrolled in the social security system.
Which sector leads apprenticeship contracts under NAPS?
The automotive sector accounts for over 51 per cent of all apprenticeship contracts facilitated under the National Apprenticeship Promotion Scheme (NAPS), out of nearly 64,000 total contracts reported in the Quess Corp data.
How are women represented in India's new formal workforce?
Women accounted for nearly 28 per cent of new UANs generated during FY26 and 26 per cent of apprenticeship contracts — figures that show incremental progress but also highlight a persistent gender gap in formal employment uptake.
Where is India's organised workforce being deployed?
Nearly 69 per cent of the organised workforce is now deployed across tier 2 and tier 3 cities, according to the report, reflecting a geographic diversification of formal employment beyond traditional metro centres.
