Temporary Employee PF Deductions: Do Contract Workers Need a PF Number?

Hi all, please assist me.

1. If an employee is temporary or on a contract for 6 months, is there any need to deduct PF?
2. This employee doesn't hold any account number at the company, so what would be their PF number?

Thanks.

Whether the employee is on a temporary or contract basis, please submit the ESI and PF forms along with the respective numbers. The PF nomination form should be submitted promptly.

Whether an employee is on a temporary or contract basis, please ensure to submit the ESI and PF forms and obtain the numbers. The PF nomination form should be submitted promptly.

Please submit the form at the PF office to obtain the PF number. All PF contributions should be directed to his account only. Have you registered your company under the EPF Act? If yes, you will have a PF account number. Just verify it.

Hi, the problem is that this guy joined the company 15 days ago. The company hired him for a 6-month contract. Our HR department only provided him with an offer letter and a joining letter. Apart from these, I only have the PF form and the joining letter. The company didn't even provide any identification, account details, or a permanent ID card. So, I want to know, if he doesn't have an account number, how will my company manage his PF? Please assist.

Thanks

Hi, I want to tell you that this is a story of India Giant Co. I am finding it fishy. So, you want to say that he will get his PF number from PF dept, and further when he will leave the company, we can transfer this to his provided account.

Hi Anuj,

Are you from the HR department, or are you asking for help for yourself and your friend? Please explain in detail what you want to know. Do you want to know the procedure of EPF (if you are from HR), or do you need some clarifications regarding your and your friend's EPF account numbers?

Please provide more information so that I can assist you effectively.

Regards,
Manish Gupta
Admin & HR Manager

Dear Anuj,

Whatever your personal matter is, I have no interest. But at the same time, you are asking, and I would like to help you. If one is on contract for six months and is conditionally hired, then one cannot claim for any PF. We can compare a person with a casual worker. As per the law, one may be eligible for ESI depending on the salary.

Hi all,

No, you all got me wrong. Actually, whenever I asked this person about his details, he never conveyed them to me. He has been working here for the last 15 days, and I don't even have any documents related to this guy. I conveyed this to my SM, but even he didn't react to it. The person just filled a joining form but didn't provide any supporting documents. So, I couldn't figure out what's going on.

Yesterday, he received his salary, and there was some issue. Then he came up to me, and I was shocked to find out that his salary was paid in cash, without any PF deduction. I am really in shock. So, now if you understand my problem, please assist me in understanding what is going on.

Hi,

Please understand one thing: the new person is hired for one day in your organization to work on a salary basis. He should get his PF account number, and the deduction in his salary becomes mandatory if his basic wages don't cross Rs. 6500. Please check his appointment letter with you and see the CTC, and act accordingly.

Regards,

Hi Anuj,

This will happen many times in the private sector. Let me know to whom you report and what your designation is. Are you in the position of a decision-maker or a follower? If you are a decision-maker, then follow whatever formalities come under the procedure. If not, then follow the instructions and adopt a policy of wait and watch. Otherwise, you will be in trouble. Let the seniors handle things.

Hi Anuj,

Follow the rule that we will consider only basic and DA for PF deduction, not the whole salary, because 6500/- is the ceiling of PF. The calculation should be based on basic + DA * 12%. For example, 4000 + 2000 * 12%. When basic + DA exceed 6500/-, then PF will be deducted only on 6500/- as per the law. I hope this is clear to you now.

Feel free to ask if you have any further questions. Best wishes.