Can I Be Forced to Join the Provident Fund Scheme on a One-Year Contract?

I am working in IOCL through a contractor for a one-year contract job. As this is a one-year contract, I have refused to deduct my PF from my CTC, and my contractor also agrees on this matter. My monthly salary is over 20,000, fulfilling the guidelines of the Employees Provident Fund Act. However, my chief engineer has refused to sign the bill in the absence of the PF challan.

So please help me. Can anybody force me to become a member of the provident fund scheme, or does this depend on me?

If the Act is applicable to all employees, no single employee can be exempted. If all employees are covered under the PF Act in your contract, challenging a single exemption is possible.

Regards,
Vinod Bidwaik

I would suggest you personally talk to your Chief Engineer and listen to his reasoning. If you accept his reasoning and agree with him, your problem is solved. If you cannot agree with him, please let us know his reasoning to help us suggest a way out. The EPF & pension fund cannot be forced upon you, but it would be better to listen to the other side.

Thanks & regards,

I presume you are on the rolls of a (Labour) Contractor who owns a license and has PF registration and is remitting the PF contribution in respect of other employees who are within the purview of PF. The Chief Engineer tried to avoid any violation in cutting and remitting the PF for everybody, and he is hesitant to grant you the exemption, so he is cautious. Although your salary is at 20K, you also mentioned it is CTC. Hence, it is not clear what is included in your CTC, perhaps the contribution towards your PF as well. In that case, it may be challenging for you to escape.

Of course, on your side, there is some reasoning as your appointment is a tenure post, and there is no likelihood of receiving a pension after completing one year. So your contribution to the Pension fund will be a loss to you only as you do not qualify for a pension. However, try to consider it differently. Suppose after this one-year tenure, you leave this contractor and secure a regular appointment with someone else (why not under the same chief engineer), there is a possibility of transferring your PF and Pension accounts to the future employer too. Try to think positively. I hope you are ambitious enough to aim for a bright future, my friend.

Regards,
Kumar.S.