Jobs created by startups and formal payroll additions: DPIIT and EPFO data

How many jobs have Indian startups created?

The Ministry of Commerce and Industry reported on 17 April 2026 that DPIIT-recognised startups created more than 4,99,400 direct jobs in FY 2025-26, up 36.1% from 3,66,870+ in FY 2024-25. Cumulative direct jobs reported by recognised startups reached 23.36 lakh+ as of 31 March 2026, across 2.23 lakh+ startups.

These are self-reported figures submitted by startups at recognition and in later updates. They count direct employees only and are not netted for jobs lost when startups shrink or close. Averaged across the base, they work out to roughly 10 jobs per recognised startup.

Jobs grew more slowly than recognitions in FY 2025-26 (36.1% against 51.6%). Startups recognised that year reported about 9 direct jobs each on average, suggesting the newest cohort is smaller at the point of recognition, which is typical for early-stage companies.

Which states lead in startup employment?

Maharashtra's startups reported 4,13,900+ direct jobs, followed by Karnataka (2,46,000+), Delhi (2,36,640+), Gujarat (2,14,800+) and Uttar Pradesh (2,11,580+). Delhi ranks fourth by startup count but third by jobs, and Haryana's 11,620+ startups reported 1,39,600+ jobs, more than Telangana's larger base. Kerala and Rajasthan each reported between 74,000 and 84,000 jobs.

What does EPFO payroll data show about formal hiring?

EPFO publishes provisional net payroll additions each month through PIB. In FY 2025-26 the first four months were strong. April 2025 added 19.14 lakh net members (released 22 June 2025), May 20.06 lakh (21 July 2025), June 21.89 lakh (20 August 2025) and July 21.04 lakh (23 September 2025). June's figure was the highest since payroll tracking began in April 2018 and 13.46% above June 2024.

Net additions combine new subscribers, members who rejoined after exits and transferred their accumulations, and exits. In July 2025 there were about 9.79 lakh new subscribers and 16.43 lakh rejoining members. EPFO cautions that the data is provisional and is revised as employers file or correct electronic challan-cum-returns.

How did EPFO additions compare with the previous year?

All four months grew year on year. Net additions were 1.17% higher in April 2025 than April 2024, 2.84% higher in May, 13.46% higher in June and 5.55% higher in July. Month on month, April 2025 was 31.31% above March 2025, reflecting the usual start-of-year hiring and onboarding of fresh graduates.

Rejoining is a large component. In July 2025 about 16.43 lakh members exited and rejoined while transferring their accumulations rather than withdrawing them, up 12.12% year on year. This shows job switches within the formal sector, which add to churn but not to the stock of formal jobs.

Can startup job numbers and EPFO data be compared?

Not directly. DPIIT's figure is a cumulative, self-reported count of direct jobs at recognised startups. EPFO's figure is a monthly net change in provident fund membership across all covered establishments. Startup employees appear in EPFO data once their employer is registered, but EPFO does not tag startups separately.

As a rough sense of scale, recognised startups reported about 5 lakh new direct jobs over the whole of FY 2025-26, while EPFO recorded about 20 lakh net additions in a typical month of that year. Startups matter most for skilled, urban hiring in states such as Maharashtra, Karnataka and Delhi, while EPFO captures the much larger flows through manufacturing, trading and staffing firms.

Who is joining the formal workforce?

Young workers dominate new enrolment. In July 2025, 5.98 lakh of the 9.79 lakh new subscribers, or 61.06%, were aged 18 to 25. In April 2025 the share was 57.67%. Net addition of women members was about 4.42 lakh in July 2025 and peaked at 4.72 lakh in June 2025, up 10.29% year on year.

Geographically, the top five states contributed about 60.85% of July 2025 net additions, with Maharashtra alone at 20.47%. The 'expert services' category, which includes manpower suppliers, contractors and security services, accounted for about 40.21% of net additions, a reminder that much formal hiring flows through staffing firms.

Net additions in the 18 to 25 age group rose through the quarter: about 7.58 lakh in April 2025, 8.73 lakh in May and 9.72 lakh in June, which was 12.15% higher than June 2024, before settling at 9.13 lakh in July. New subscriber numbers rose 3.61% year on year in June 2025 to about 10.62 lakh.

What do these numbers mean for employers?

Every establishment with 20 or more employees must register with EPFO and deposit contributions by the 15th of the following month. ESIC coverage generally applies to establishments with 10 or more employees in notified areas, for employees earning up to ₹21,000 a month. Startups that are scaling quickly often cross these thresholds within a year, so registration should be planned alongside the hiring plan rather than after it.

EPFO's monthly figures are revised as employers file late returns or correct exit dates, so compare provisional numbers with later releases before drawing conclusions. For an individual employer, the practical point is simpler: an unfiled or late monthly return also delays employees' service history and transfers, which shows up in exactly these statistics.