Is Provident Fund Deduction Required for Contract Teachers Under Government Schemes?

I want to seek some information regarding the deduction of Provident Fund. Is it mandatory for employees hired on a contract basis for a period of 2 or 3 years for the position of teachers or instructors under a government scheme in some state to deduct Provident Fund, or do employers have to contribute towards the Provident Fund from the salary?

Thank you.

Regards,
Suresh Kumar P.

Determining Provident Fund Requirements Based on School Type

The answer would depend upon the nature of your establishment. You have mentioned that it is a school but have not specified whether it is a government school, government-aided school, or a purely private school. For each type, there are different Provident Fund schemes based on the location's state. Therefore, without providing full details, it would be challenging to offer accurate guidance.

Regards.

If the employment contract is for more than 30 days and the employee(s) employed by the contractor or you have worked for more than 30 days in a year, they are eligible for PF deduction. An equal amount has to be contributed by the employer also. Go through the Act, and everything will be clear. Nowadays, contract documents also contain such clauses regarding pay/wages, PF, leave, and other social obligations to be met by the employer/contractor.

Best Wishes,

Regards

Provident Fund Coverage for Fixed-Term Employees

If the establishment is covered under the PF Scheme, the fixed-term employees will be covered under the provisions of the act, whereas retainers will not.

Regards,
Mritunjay Nath Sahu GM (HR)

Sir,

Is the deduction of PF the responsibility of the employer? If Form 11 is not given by the employee, is the deduction mandatory?

Providing Form 11 and obtaining it duly signed from the employee is the employer's duty. The contribution to EPF would be opted or not; it is the choice of the employee. It is a long chapter to discuss, but in short, if the payment is made after the deduction of TDS u/s 194J, then EPF provisions may be exempted. If TDS is not deducted, then such staff is an employee of the establishment and is eligible for EPF provided their basic + DA is below 15,000/- per month.