Which is more reliable—EPFO data or PLFS?

Which is more reliable—EPFO data or PLFS?

Background:

• EPFO data: Administrative payroll data, covers formal sector workers enrolled in provident fund. High frequency, but excludes informal sector (~80% of India’s workforce).

• PLFS data: Household survey, nationally representative, covers both formal and informal employment.

Balanced Answer: For overall employment/unemployment, PLFS is more reliable since it covers all categories. EPFO is useful for tracking formal sector payroll additions but has limitations (multiple accounts per worker, policy-driven enrolments).

Cross Q: 👉 Then why does government often cite EPFO numbers?

Response: Because EPFO provides monthly, high-frequency indicators, while PLFS is annual/quarterly. Both should be used together—PLFS for scale, EPFO for short-term trends.