New PF Amendment Confusion: Does a Small Contractor Need EPF Registration?

As per the new PF amendment, whoever falls below Rs. 15,000/- of salary/wages per month will have to contribute compulsorily to EPF. However, if the contractor manpower strength is less than 20 and the labor wages are also less than Rs. 15,000/-, does the contractor need to get the PF Registration?

If you are working in any company, industry, construction, or anywhere, and there are more than 20 workmen working there, then if you want your own establishment code, you have to register with EPF.

Dear seniors, I too had a confusion regarding the latest amendment. Our company is registered under the PF Act, but one of our contractors does not have PF registration as he has never had more than 20 workers since joining. The contractor is reluctant to register under the PF Act. Is it mandatory for the company to pay the PF on behalf of his workers or not? If we are required to contribute to the PF, will the contractor be responsible for reimbursing the contribution? I have been advised that the number of workers employed is irrelevant. If the contractor fails to contribute to the PF, the company is obligated to make the payment. Kindly suggest...

You need to cover the contractual employees too if your total workforce is more than 20. The principal employer is responsible for legal compliance. The contractual employees can also be covered by the principal employer.

Thanks,

Regards