Do Contractors with Less Than 10 Employees Need EPF Registration? Seeking Guidance

Dear All Senior Team Members,

Guidance on EPF & MP Act Registration for Contractors

I seek your guidance on the following topic: If a contractor is performing their contractual duties at a site and has deployed three employees there, and the Principal Employer is covered under the EPF & MP Act, 1952, does the contractor also need to register under the EPF & MP Act? The contractor employs only 8-9 individuals, and the gross salary of all employees is equal to or more than Rs. 15,000.

Please provide your valuable guidance on this matter.

Thank you all in advance.

Imagine a situation where there are no contractors available. What would you do? I suppose you would end up hiring everyone on your payroll. Similarly, if your company is covered under EPF, your contractor also needs to cover all his employees who are working under your company's roof. Non-compliance by those employees would result in a default on your end.

If the employees are drawing Basic Pay (Basic + DA) of more than Rs. 6,500 per month, EPF usually may not be compulsory. However, during an inspection, the EPF officer may insist on deducting PF, so please ensure that Form 11 is filled out.

Thank you.