Provident Fund Rule In Contract Labour

Hi To everyone
i m working in a private limited firm as an HR.
the pf ceiling limit is up to Rs 6500 basic. but here i want to ask you that is the same applicable with the contractors.?
if 2 or the 3 contractors are working in our firm, then what is the ceiling limit for the workers of the contractors? if the workers basic salary are the above Rs. 6500, then what is the pf rule for them?
please help me to know this above question.
Thank you
Regards
Hetal

Hi
in our private limited company we have some contractors whose basic pay exceeds pf ceiling limit and also ESI ceiling limit (PF: Rs. 6500 and ESI: Rs. 15000) as we are registered with factories act. I want to know whether still pf and ESI will be deductible?
kindly advise.

Hi
in our private limited company we have some contractors whose basic pay exceeds pf ceiling limit and also ESI ceiling limit (PF: Rs. 6500 and ESI: Rs. 15000) as we are registered with factories act. I want to know whether still pf and ESI will be deductible from contractors salary?
kindly advise.
From
Hetal

Hello Hetal
Why did you post it 3 times ?
To answer your question, PF rules are same for all. Every company with more than 19 workers are covered in PF and the rules will apply to every employer, however ever big or small.
The contractors who have less than 20 workers are also liable for PF if the workers are working in a factory where the PF rules apply.
So,they will also have to pay
The limit of 6500 will also apply to them.
Please note that employees whose starting salary was above 6500 and who didn't have any PF account at the time of,joining only will be eligible for exemption

Thank you for your reply.
with continuation of my question, if salary exceeds Rs. 6500 and less then Rs. 15000 then ESI will be applicable or not in case of contractor working in a PF registered company.

The rule for esic is similar to that of pf
If the factory is covered under esic the contract eorkers have to be covered also.
They are exempt only if gross is above 15000 per month

You seem to be referrig to persons employed under contract. it is not known whether it is tenure based contract or through some contarctor.Whetever, the ceiling limit is same for every one i.e Rs.6500/-p.m. However your question seems to be since their basic pay is more than Rs.6500/- whether they can be covered under P.F Act. In this context, my view will be if they were members of P.F scheme prior to joining your company, they need to be covered by you also even though their basic is more than Rs.6500/- . If they were not. they can become excluded employees and you need not cover them. Therefore obtain a declaration from them to this effect whether or not they arwere member sof PF previously..
B.Saikumar
HR & labour Law Advisor
Mumbai

Dear Hetal,
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