Seeking guidance about remitting EPF contributions. One of my clients' HR says irrespective of days being served by employees under contract, a contractor should remit contributions for the whole month. I said it's done at actuals as per attendance, but he said you should submit any circular if available. Please help.
From India, Vadodara
From India, Vadodara
Contractor Employee Deployment and EPF Contributions
A contractor deputes his employees to any establishment for a few days, but the employee remains employed with the contractor for the whole month. If the contractor does not avail the services of the employee for the entire month, it would be clearly reflected in the ECR as NCP days for the balance of the remaining days. This is because the employee remains an employee of the contractor for the whole month, regardless of the contracted days.
For example, if the contractor deputes an employee to an establishment for only 10 days, then the remaining 21 days of August 2018 would be considered as NCP (non-contributory period).
A contractor deputes his employees to any establishment for a few days, but the employee remains employed with the contractor for the whole month. If the contractor does not avail the services of the employee for the entire month, it would be clearly reflected in the ECR as NCP days for the balance of the remaining days. This is because the employee remains an employee of the contractor for the whole month, regardless of the contracted days.
For example, if the contractor deputes an employee to an establishment for only 10 days, then the remaining 21 days of August 2018 would be considered as NCP (non-contributory period).
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