New Delhi: Despite being a full-fledged state, Arunachal Pradesh does not have a single regional office of the Employees’ Provident Fund Organisation (EPFO).
Shockingly, several of its districts—including Kra Daadi—report zero active Provident Fund (PF) registrations, according to the EPFO State Profile 2024. This glaring absence of infrastructure and engagement comes despite national claims of universal financial inclusion.
A closer look at the 2024 profile paints a worrying picture across the Northeast. States such as Manipur, Nagaland, Mizoram, and Meghalaya reflect similarly bleak participation. Mizoram, for instance, has fewer than 2,000 contributing members, with many districts reporting negligible or no employer registrations. In Nagaland, just about 2,500 workers are EPFO beneficiaries—a minuscule number by national standards.
This starkly contrasts with Assam, which emerges as a rare bright spot in the region. Assam benefits from a relatively urbanised economy with over 1.9 lakh enrolled workers, most concentrated in Kamrup Metropolitan (Guwahati). Key contributors include the tea industry, logistics, education, and health services.
Even Sikkim, despite its small size, performs better with 9,000 to 10,000 contributors, mainly due to formal jobs in hydropower, pharmaceuticals, and tourism, as per the same report.
Yet, the rest of the Northeast remains nearly invisible on the EPFO map.
The problem, experts argue, is deeply structural. As per the Periodic Labour Force Survey (PLFS) 2022, Arunachal Pradesh’s Labour Force Participation Rate (LFPR) rose from 47.5 per cent in 2019–20 to 51.4 per cent in 2020–21, and its Worker Population Ratio (WPR) improved from 44.3 per cent to 48.5 per cent in the same period.
A March 2023 report by the Labour Department also showed a drop in the unemployment rate in the region from 4.8 per cent to 4.2 per cent. But even as employment rises, formal social security coverage lags far behind.
“Because of the low number of formal sector employees and the difficult terrain, EPFO outreach in these states has been minimal,” an EPFO official told Millennium Post on condition of anonymity.
The lack of industrial development, geographic isolation, and limited digital infrastructure have stunted institutional presence and regulatory enforcement. Most employment in the region remains informal, contractual, self-employed, or agricultural, which places it outside the mandatory scope of EPF.
Moreover, awareness remains a hurdle. In many tribal and rural communities, PF deductions are seen as a cut in salary, rather than long-term savings or social security.
Ultimately, another official added that the low EPFO coverage in the Northeast is not just a policy failure but a reflection of systemic inequality. Until structural reforms promote formal employment, financial literacy, and regional connectivity, millions of workers will remain excluded from India’s most extensive social security net—not by choice, but by design.