Please let me know if PF deduction for contractual labor is compulsory. My company has received a 5-year contract to run a government project, and the team size for the same is 50 people. Is there a provision that allows us to exclude them from PF? Awaiting your reply.
From India, Mumbai
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From India, Mumbai
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Dear Zarna,
You are required to deduct and contribute to PF as an organization. The coverage for PF deduction for individuals depends on their wages; if a contract worker earns more than Rs. 15,000/-, they can be exempted from PF deduction. There is no other legitimate way to avoid this. If you fail to comply with PF requirements, your principal employer (the organization that has engaged you) would need to comply with PF, and they may recover the amount from you.
Shailesh Parikh
99 98 97 10 65
From India, Mumbai
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305You are required to deduct and contribute to PF as an organization. The coverage for PF deduction for individuals depends on their wages; if a contract worker earns more than Rs. 15,000/-, they can be exempted from PF deduction. There is no other legitimate way to avoid this. If you fail to comply with PF requirements, your principal employer (the organization that has engaged you) would need to comply with PF, and they may recover the amount from you.
Shailesh Parikh
99 98 97 10 65
From India, Mumbai
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