Navigating PF Coverage for Short-term Construction Workers: Seeking Your Advice

Dear All, I am working in the Construction Industry. In our company, most of the labourers are paid on a weekly and piece-rate basis. The average earnings of a labourer are definitely more than Rs. 6500/- per month (the statutory ceiling limit under PF is Rs. 6500/-). These earnings of the labourer are from the start of their engagement. They are reluctant to be covered under PF as they will be working only for a short period (maximum of one year).

Request for Opinions and Suggestions

I request your opinions and suggestions on the following:

1. Whether these labourers have to be covered under the provisions of EPF?
2. If not, what will be the position in case their earnings fall below Rs. 6500/- P.M?
3. Can we take a request letter from these workers not to be covered under the Act?
4. Whether such a request letter is legally valid?

With Regards,
N. Mohan

As you mentioned, you are in the construction industry, and all employees have a salary of more than 6500/-. If you do not want to deduct PF, you have to maintain Form No. 11.

Regards,
Vikram Trivedi
PF Consultant
[Phone Number Removed For Privacy Reasons]

As you said, we are obtaining Form 11 from all the laborers. Thanks for clarifying one of my queries. It will be more helpful if you can share your opinion and suggestions on others too. I require an opinion, more particularly on earnings, as our laborers are working on a piece-rate basis.

With Regards,
N. Mohan