Assistant Manager Human Resources
Epf & Esi Matters
Sr.manager Hr & Legal
Pf, Esi, Placement, Payroll & Labour
Krishna Murthhy
Manager - Hr & Admn.
+1 Other

Hello seniors!
My query is my company is having 19 employees and 1 contract employee (whose pf is being paid by contractor) . So my queries are:
1. If we should include that contract employee while going for PF Registration if yes then why as his pf already paid by employer.
2. If we should not include him then its voluntary for us to go for pf registration? Because it was compulsory when we are 20 or more. Please confirm
If we should include contract employee or not?
I am dropping any query on this site for the first time , please help me.
Expecting valuable replies from seniors.
Best Regards
Meenakshi Kalra

From India, Delhi
Hello Meenakshi Kalra,
PF registration is mandatory for an organization when it reaches the head count of 20. Head count should be taking into account both on rolls employees and Contractors as well. In your organization situation, since you already have 19 employees + 1 contractor, you should now go for PF registration.
However, the PF contribution for the contractor may not be required since it is covered through a third party contractor.
Hope this clarifies.

From India, Bangalore
Thank u Sir for your valuable reply.
But we are 20 after including that third party contract employee. As per your reply, if i exclude that person then we are 19 employees then now if its voluntary for us to go for PF Registration or this is compulsion.
Actually we are in this stage of employee strength from April'13 . I am in dilemma . Please throw some more light in this matter with your experience.
Thanking you in advance.
Best Regards

From India, Delhi
Hi Meenakshi Kalra,
PF registration and PF contribution remittance are two different.
From PF registration point of view, your organization is since touched the head count of 20, you need to go for PF registration. As per PF rule, you need to take into account all of them who is working for your company be it on rolls or contractors. Because, the principle employer for that contract employee is your company.
With regard tot he PF contribution remittance is concerned, you need to make the PF payment only for 19 employees and for 1 contract employee PF contribution will be paid by your Contractors (third party vendor).
However, please collect these documents such as a) PF remittance challan and b) PF online extract to show that the contract employee is registered under PF, as during the inspection of PF department expects you to maintain these documents at your office.

From India, Bangalore
Dear Meenakshi,
It seems that you are not aware of the diffrence between a direct employee and the employee engaged thru contractor (for whom you are the principal employer). Ask the contractor to open the PF account for the contract employee,,

From India, Moradabad
Dear Meenakshi,
While calculating number of employees for PF eligibility, all the employees (including contract employees) are taken into account, therefore your company is legally eligible for coverage under EPF.
However, if the PF of the contract employee is paid by the contractor, there is no financial liability on you to pay his PF, but you are certainly eligible for coverage under EPF Act.
So, it is like; total number of employees are 20 and Number of PF members will be 19.
While you apply for PF code number, please mention that Mr. X is a contract employee in 'the list of members' that you will attach with the application.

From India, Delhi
I agree with the views of Mr. Kapil. For the purpose of coverage,such an employee can be counted,but for the purpose of contribution, the employer has to ensure that contractor is deducting and depositing the PF contributions every month with the RPFC.
Pl. obtain the details of PF code no. Of contractor.
AK Chandok
RPFC (Retd.)
<link no longer exists - removed>

From India, Chandigarh
Hi Meenakshi Kalra
In case the contract worker is engaged through a contractor who is having his own PF Establishment Code and his own Labour License, the contact worker can be treated as belongs to a separate establishment for PF/EPS purpose, otherwise the contract worker becomes an employee of the principal employer.
R. Krishna Murthy

From India, Nizamabad
Hello Meenakshi.
I would advise you to search posts and contents in this site before posting your issues. This kind of issues has been discussed several times in this forum.
Kindly go through previous post you may find appropriate one.

From India, Bhubaneswar
HI, Get registered with PF department. Check up that all of your employees are being paid above Rs.6,500/- you need not to deduct and contribute PF. Any one can counter this statement please. hrkpati
From India, Guwahati

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