Employees Provident Fund Organisation (EPFO) enrolment data showed Gen Z comprised 79% of the new Universal Account Numbers (UANs) generated in FY26, a report by workforce solutions and talent infrastructure company Quess Corp said.
The numbers demonstrate a “generational shift in the ” and show that Gen Z employees are driving formal employment in India, the report, the report titled ‘Pulse FY2026: Shaping India’s Workforce Future’ added.
It analysed data from the , Periodic Labour Force Survey (PLFS) and industry sources, besides workforce trends, publicly available datasets, industry reports and macroeconomic indicators, it stated.
The report said that retail, e-commerce, logistics, services, and staffing sectors continue to act as major entry points for first-time workers.
Gen Z in the workforce: Here’s what numbers indicate
- Of the more than 57,000 new UANs generated during 2025-26, the majority of 79% were of aged between 18 to 30, according to the report.
- Among India’s young workers, likely first-time job holders, aged between 21-25 comprised more than 35% of the new UANs — making them the single largest cohort entering formal employment, it added.
- As per the report, of the new EPFO subscribers in FY25, 59% were aged between 18-25, the 20% increase year-on-year underscores “the growing role of young workers in expanding India’s formal economy”, as per the report.
- It further noted that given the large number of first timers in the formal employment space, companies are in apprenticeships, job-ready skills to improve the transition from education to work and technology-enabled hiring.
- Close to 64,000 apprenticeship contracts were facilitated under the National Apprenticeship Promotion Scheme (NAPS).
- Among NAPS, the automotive sector accounted for over 51% of all apprenticeship contracts.
- Meanwhile, women accounted for nearly 28% of new UANs generated during FY26.
- Women received 26% of contracts.
- Further, nearly 69% of the workforce is deployed across tier II and III cities, “which underscores the growing role of emerging economic centres in organised employment landscape”, as per the report.
- When it comes to the profile, the workforce in FY26 reflects the broader transformation underway within India’s labour market, as per the report.
- The organised workforce is becoming increasingly educated, with 96% having completed at least Class 10, 61% completing Class 12 or above, and 30% holding graduate or postgraduate qualifications, it said.
- It added that that rising educational attainment, employability skills, and digital readiness are increasingly shaping demand across sectors.
‘Focus must move beyond hiring to building employability’
Lohit Bhatia, Executive Director and Group CEO of Quess Corp in the statement noted that 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. Apprenticeships are emerging as one of the most effective pathways into formal , giving young people the opportunity to gain industry-relevant skills, practical workplace experience and the confidence to build long-term careers,” he added.
For employers, Bhatia believes, this offers a way to develop future-ready talent from day one.
EPF account: Membership — Key highlights
According to the EPFO’s official website, employees get membership only after the application of the PF Act to their organisation / company. An employee cannot join the EPF directly. One can become a member only by way of employment in an establishment covered under the provisions of the EPF & MP Act, 1952. Thus, for workers in a firm to which the Act is not applicable, cannot join the EPF.
There is no age restriction for becoming a , but an employee who has already attained the age of 58 cannot become a member of the pension fund.
Employees who draw basic wages and dearness allowance () up to ₹15,000 per month are eligible to become a member and will continue to be subscribers even after pay exceeds ₹15, 000. However, contribution to the fund will be restricted to ₹15, 000, with the employer required to match contribution.
Further, employees drawing more than ₹15,000 per month can also choose to be EPF members under para 26(6) of the EPF Scheme. The option has to be submitted to the EPF office within six months of joining of such member.
(With inputs from PTI)
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