PF Query - weeper who is not on rolls and comes to the office twice a day

urmila.gupta06
Dear All, We are an I.T company and have around 30 employees, we are registered to P.F also.
We have a sweeper who is not on rolls and comes to the office twice a day. we pay him cash per month and we do not prived P.F to him. Will thr be any problem if P.F authorities come to know abt it?? how can we exempt him from P.F?? Please Advice.
Madhu.T.K
You are not suppose to exempt a casual employee. All those exempted from the operation of the EPF Act are those drawing salary (at the time of enforcement of PF to the company or at the time of joining) of above Rs 6500. A sweeper may be doing a part time job, but he should be covered under the EPF and ESI.
Regards,
Madhu.T.K
urmila.gupta06
Dear Madhu,
If we pay him around Rs. 1500/- then also he is covered under P.F. Is thr any way to exemt him from P.F.
Thanks.
With Best Regards,
Urmila Gupta.
Madhu.T.K
There is no lower limit. In order to get him excluded, he should be given not less than Rs 6500. Otherwise he should be covered inorder to avoid penalties/ damages.
Regards,
Madhu.T.K
tsivasankaran
Hello
Even if you pay him more than Rs 6500 per month and if you cover other employees drawing more than Rs 6500 under pF then you need to cover thi sperson as well.
However, you have mentioned that he comes and does work once in two days.
Prepare voucher
Paid to Mr towards cleaning expenses
and get it signed every time he comes. You are paying him Rs 1500/ and he is expected to come 10 times a month. Every time he comes prepare a voucher for Rs 150/ and if possible pay it to him then and there.Do not book it anywhere as wages.
Legally you will not have anjy issues
As of now, PF authorities will not pose any problem. Even in future this wil be raised as an issue
Siva
Madhu.T.K
Siva is right. But EPF Officials can inspect the books of accounts and any voucher in which 'labour' is involved can be booked as paid to an employee- whether part time or full time- and on the basis of that the employer can be summoned u/s 7 A of the Act to produce the books of accounts. Though PF authorities are not very concern about such vouchers, ESI officials will charge it. Therefore, voucher payment without any proof of employment may be taken as a temporary arrangement. I believe so in the light of my experience in Kerala, I don't know whether the authorities are flexible and practical in other states.
Regards,
Madhu.T.K
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