Hr Consultant
Das Debraj
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Thread Started by #sagar_ghule

1. Contractor is an independent establishment registered with EPFO. So if he have employed employees in semi-skilled and skilled categories whose wages are less than Rs. 15,000/- and who had not worked with any EPFO registered establishment or had a UAN prior to April 2016 can be benefitted under this Scheme. This will same follow for Organisation as Principal Employer according to me - Please confirm
2. Since Government will be paying 8.33% contribution of contractor for 3 years, as a Principal Employer can we choose to recover it from Contractor? What process have to be defined by your Organisations in this regards. Can anyone share their practices / views / guidelines in this forum. It will be great help from you all.
Thanking you.
Sagar Ghule
16th December 2017 From India, Kalyan
The benefit is available to the contractor itself, who has submitted their contribution in their own code
if the principal employer has enrolled the contract employees in their epf account then only the benefit is available to the principal
16th December 2017
Well Noted Sir.
My query is different.
We as a Principal Employer reimburse a particular Manday rate to contractor which includes PF & ESIC contribution rate / cost. Under PMPRY scheme contractor will get refund of the 8.33% while during generating and paying challan amount. So it will be a benefit to contractor since we as Principal Employer had paid him and he also received refund from EPF. My query is can we recover the amount from the contractor and if yes then how. What process has to be followed?
22nd December 2017 From India, Kalyan
In the simple words the benefit is to be availed by the immediate employer who has encouraged to provide fresh employment and make it covered under EPF also,
as the principal has no role in direct recruitment of contract employees, so the benefit will always to be retained by the employer who has enrolled them in their own code.
28th December 2017
Ok. Thanks. Noted.
But some of the locations / company unit are recovering such amount which was paid by them and in respect of such employees the contractor received refund.
28th December 2017 From India, Kalyan
There is no such rule or norms prescribed, however if the principal and contractor both agrees upon any point, then it is between only both of them, not to be taken a rule or concept
28th December 2017
If there are some employees whose salary is less than 15000/- just stopping to pay 8.33% pension fund is ok or should we have to give the list to concerned PF department? and in the mean time if the salary crosses 15000/- still govt will contribute for 3 years?
Kindly let me know.
1st January 2018 From India, Bangalore
This is PMRPY post, and PMRPY scheme allows certain subsidy "after" compliance of data of new employees, it never ask the employer to stop any contribution payable.
1st January 2018
It is clear from PMRPY scheme and the above discussion, PMRPY benefit is to be availed by the immediate employer only.
Further please guide us, what can a contractor (immediate employer) do if principal employer wants to recover the amount forcefully from the contractor?
28th March 2018 From India, Delhi
Sir, please guide in this regards.
2nd April 2018 From India, Delhi
As our pharma company (principal employer) is forcing us that this scheme is not benefitted to employer (man power contractor) whether u hav regitered with epfo or not, 8.33% pf contribution is paid by principal employer so epfo registered employer are no one to avail this benefit.
Kindly clarify in this matter.
26th May 2018 From India, Kolkata
1) PMRPY is an incentive to employer to encourage fresh employment, if the gross salary exceeds 15000/- then PMRPY would be get auto switched off but the contribution will continue, from the employee and employer both
2) if the Principal employer want to avail the incentive then he can enroll the contractor worker under his own muster roll and complete formalities, there are series of formalities to b completed before making ECR/ challan and it is to be retailed by the employer who is liable to pay 12% of employer share.
10th July 2018
Here is 2 Questions:
1. Pls update 15,000/- below means gross salary or basic pay ?
You are aware of that basic salary is always 40% to 60% gross salary.
For example 16,000 gross salary employee - is he covers under PMRY?
11th July 2018 From India, Hyderabad
Please answer:
Actual PMRY scheme is from Apr-2016. But we came to know about this benefit from May-17 and we are getting PMRY benefit from May-2017.
Can we get arrears from Apr-16 to May-17 from PF dept?
If yes, What is procedure to get arrears amount?
11th July 2018 From India, Hyderabad
if the employer register the employees under PMRPY, then gov will calculate the benefit, and credit the same to given bank account on the portal after annual a/c finalization
12th September 2018
Dear members,
This is really an intersting matter to discuss.
First of all I would like to update now the whole employer PF contribution (12%) is applicable for PMRPY scheme wef 01.04.2018. Rightly said by learned members the immediate employer can avail the benefits.
Now the main point is whether the PE can force / request the contractor to pass on the benefits. Though everyone will favour to their part. Contractor will never like to pass on the benefits whereas the PE would like to get the benefits (through the contractor’s invoices) for cost optimization. From my point of view there could be two scenario :-
1 Whether the PE has awarded lump sum contract? Which includes recruiting and managing the manpower, compliance of all statutory benefits (irrespective of revision in MW Act, Amendments in PF-ESI contribution, Amendment in Bonus-Gratuity-MB Act etc.). In such contract as per my opinion the PE is not supposed to request/force the contractor to pass on the PMRPY benefits. Because the contractor has been bearing all statutory compliance related expense from his pocket only and in case of increasing the cost (due to amendment in various acts) not claiming the cost impact from the PE.
2 In case where the contractor is providing service on “Service Charge” basis (which is now a days regular practice from many PEs). There are many big corporates / contractor who are providing “Third Party Services” to various organisation on basis of actual month CTC (which arrives on basis of defined wages and acutal attendance). On the monthly calculated CTC they claim some service charge (5% - 10% as per the negotiations). All other cost (Bonus, gratuity, MB, MW Act revision) are also charged as per Amendments in the Acts.
In such case the PE can request the contractor to pass on the benefits. Bcoz PE has been bearing all cost impact directly (due to change in law). Hence if any benefit is being given by the govt. to the “Third Party”, same should be pass on to the PE. The contractor should also pass on the benefits to the PE.
I am handling more than 50 contractors (who deploy huge manpower in our projects all over India). In case where the benefitted is amount is high, I requested the contractors to pass on the benefits. Some of them have been agree and we are in discussion with the rest as well.
Hope the senior member will agree with my justification, if required I would like to throw more light on the matter.
13th September 2018 From India, Delhi
WPRKS CONTRACT is usually on fixed price plus taxes ( normally GST as on date) and it may contain certain part of goods, certain part of service , but the rates are inclusive of all labor benefits and perks
in case of pure labor contract only , form 5 form 7 form 13 and form 14 are vital documents under CLRA act to discuss the issue, if these forms are maintained then these employers get amalgamated to PE through the contractor channel and in case of any mishap / fatal accident the PE would have to report the departments and complete the legal formalities, PLUS responsible for compensation under ID act
choice is of PE to chase the beneficiary incentive which is actual payable to immediate contractor and get liable for all ID responsibilities of the contract employee's, or to ignore such penny amounts and ignore the Industrial Disputes responsibility also
14th September 2018
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