How Do I Update EPF Records When Converting Contract Employees to Permanent?

Converting Contract Employees to Permanent Employees

Is there any procedure to convert a direct employee from a contract employee? Our company has assigned some contract employees for a particular project, and the company deducts their PF (Employee Share) from their wages, even though the company contributes the Employer share and pays the total contribution, updating the EPF portal online. Now that the company project has ended, we have recruited permanent employees from among those contract employees.

In this case, when I create the ECR (Electronic Challan Cum Return-EPF), should I change the employee type? I had previously set the employee type as Contract employee for this particular employee in the previous ECR.

Looking forward to your reply.

Thank you,
Titan

Based on my understanding, you need to have the contract employees resign first and then rehire them with a new Date of Joining and separate Employee Numbers. These details need to be updated as Permanent employees in the EPF website, which will result in them receiving new PF numbers.

Regarding the PF amount, they can transfer the funds from the contract employee account to the permanent employee account after 60 days from the Last Working Day. Alternatively, they can choose to withdraw the amount.

Regards,
Amith R.