Is PF Deduction Mandatory for Contract Employees? Seeking Clarification and Notification

kamala@ainoglobal.com
Mandatory PF Deduction for Contract Employees

Is it mandatory to deduct PF (Provident Fund) from contract employees? If it's mandatory, kindly suggest sending a soft copy of the notification.

Regards
prghr
PF Compliance for Contract Employees

PF is mandatory whether for Contract, Temporary, or Casual employees. Ask your contractor to get the PF code number from EPFO and also ask them to submit their monthly compliance properly. This is the prime responsibility of the PE to verify the PF records submitted by the contractor, like ECR, CRN, etc., through the EPFO website before processing the contractor's invoice.

Important Note

As per my experience, before allocating the work to the contractor, PE has to check whether the contractor has an existing PF code with EPFO or not. If the contractor has not complied with PF requirements, PE may withhold some amount due to non-payment of PF. After the contractor pays the PF amount to EPFO, the same amount may be refunded to the contractor.

Let senior members give their suggestions/views.

Regards
varghesemathew
No notification is needed. Please read the definition of 'employee' in the EPF Act, paragraph 30 of the EPF scheme.
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