Hi There is no new provision regarding payment of PF contribution on contract employees and whose salary is Rs.6501.00. Under Para 26 of Employee's Provident Fund & Misc.Provisions Act,1952 and rules framed there in , it is clearly mentioned that 1. Every employee who joins an organisation is required to become member of employees provident fund scheme, employees pension scheme and employees deposit linked insurance scheme subject to condition that his / her salary/ Wages should not exceed Rs.6500.00 per month. 2. Under Section 2 an employee has been defined as person employed for wages in or in connection with the work of establishment whether directly or through contractor. 3. From the above both the things are very clear a. To become member of statutory scheme salary / wages as defined under the act and scheme should not be of more than Rs.6500.00 per month. But there is further clarification that if an employee whose is already a member and his / her wages go beyond Rs.6500.00 after enhancement in same organisation or he / she joins new organisation with wages exceeding Rs.6500.00 per month , shall remain the member till he/she withdraws the benefits and and start as fresh employment for the purposes of EPF. On Joining every employee has to sign a declaration of past employment and membership of EPF on Form No.11 prescribed under the act, declaring that he / she was member of the scheme or not or has withdrawn the benfits provided under the scheme. b) person employed through contractor or employed on contract falls under the definition of employee. 4. Hence main thing is that if an organisation intentionally make salary of a person beyond Rs.6500.00 permonth with intention of not providing the benefits provided under the statutory scheme then the statutory authorities may object on that. If salary bifurcation is applicable for all employees and majority of employees are on regular basis and not on contractual basis, authority before initiating the legal action always apprise the company of their intentions. I hope the above is quite clear and will help you to sort out. For achieving proper implementation of any law, its objective is to be achieved. So objective here in this case is social security. Take decision on the above basis. Regards Anil Anand