How to Handle Employee Requests to Avoid PF Deductions on Fixed-Term Contracts?

Hi! This is Bablesh Kaushik. The company I work with intends to engage some skilled workers on fixed-term contracts for one year. The individual is requesting not to deduct the PF. His basic & SA is above 6500/-. Kindly suggest how to proceed and ensure that PF liability does not come to the company.

Best Regards,
Bablesh

If the employee is not a PF member till now, you can get Form 11 filled out by the employee and submit it to the PF office. There will be no liability on the company. However, if the employee is already a PF member, then you will have to deduct the PF or consider taking him on as a consultant, deducting only his TDS.

Regards,
Ashutosh Thakre

Yes, even they can be taken on as consultants. Provide them with all the employee benefits, but treat them as consultants. This approach will assist you in resolving the issue.