Contractor PF

Dear All,

Can you please help me,

i want to know that is the contractor is eligible to deposit the PF of their employees if they have less than 20 Employees.

Musawwir

Yes, there is no restriction in EPF Act for companies desirous of contributing PF even in cases where numbers of employees are less then 20.

Contrary views solicited.

hi

The contractor having less than 20 workmen and having not registered with the PF organisation, can deposit the PF amounts directly in the Principal employer who had awarded him the work at his premises in his PF A/c No. and submit the principal employer the deposit challan as a proof of his depositing the PF amount so deducted from his employees and helping him to file the monthly return.

Or

The contractor can apply PF Registration and take his own A/c No. on his firm name and deposit the amount of PF in his PF A/c and submit a copy of deposit challan to the principal employer who had awarded him the work.

Further it is to inform you that, as on date most of the Principal employers who are engaging contractors for various jobs, are demanding PF Registration Code No. of the the contractor before they are awarding the contractor the jobs.

Mohan Rao
Manager HR

Hi Mohan

Thanks for the information but i had several contractor in my organization and each contractor have 10 to 15 employees, right now i have bifurcate them in three contractor and now some of the contractor dont want to submit their and their employees PF.

so thats because i want to know that if we registered that contractor in pf office and he have 10 to 15 employees than he have to submit their employees pf or not???????

Musawwir

Hi Mr. Musawwir

As per the PF Act the PF to be deducted from the employee who may be a regular on rolls of the company or from the contractor who is awarded a work to perform in the premises of the company, from the first day salary or wage paid by the employer, it can not be denied by either of the parties for not deducting the PF amount from the wages or salary what ever name we call.

The Contractor if denies for any deduction of PF from his employee wages, he will be punished as per PF Act, and at that situation the Principal Employer is liable to pay the PF contribution as indicated in PF Act and Rules the share of Contractor Employees as well the share of Employer too i.e. total 12 + 13.46% in total, hence the Principal employer i.e. the company who engages the contractor is very much liable for payment of the PF contributions of all the workmen of the company as well the contractor, hence he should deduct the PF contributions from the wages to be paid to contractor labour and then pay the net i.e. wage payable - PF contribution i.e. 12% of wage (Minimum wage).

All in all the Principal Employer is always liable for the payment of PF Contributions he can not escape from the clutches of PF Act and Rules in force.

Mohan Rao
Manager HR