Managing PF Deductions for Casual Laborers: How Do You Handle High Turnover?

Hello Sirs,

I am working in a limited company as an HR. In our establishment, there are some casual laborers, nearly 100 in number. They work 2 to 4 days a month (as labor changes daily, with one person working one day and another laborer the next day). How can we deduct PF? If we enter 100 casual laborers in the register per day, it will accumulate to around 3000 names per month.

Do we deduct PF for 100 laborers or for 3000 laborers? Can anybody provide suggestions, please?

A. Chandra Reddy
9626263640

As per EPF and ESI Acts, you are expected to name all the casual workers who are employed in your establishment. If your casual labor engagement is regular, why don't you explore the possibility of engaging a limited number of workers? It hardly makes any difference as far as you (Principal Employer) are concerned. For the contractor also, if he does not like to give any permanency to workers hired by him, let him restrict each worker for less than 240 days in a year.

Regards, Madhu.T.K

You need to cover all employees, whether they work for one day or thirty days in a month, under PF. I used to have more than 1,000 new temporary workers coming in every month and more than 1,000 workers leaving every month in the late '80s. We covered all such workers under PF without IT support. All entries were manual, with just one person handling everything without any complaints. With the significant IT support available today, it is much easier to manage these issues.

Regards,
[Email Removed For Privacy Reasons]

Dear Senior Sir, I am Anil Chaturvedi, working as HR in our company. I have one confusion. Our company has 15 (casual) workers for one month. So, can PF be deducted or not? Kindly advise me on the same.

Regards, Anil Chaturvedi

As per the law, they need to be covered. There is no second opinion on this.