Understanding PF Deductions: How Many Days and What About Daily Contract Laborers?

Hi all,

Can anyone please let me know the minimum number of days to deduct PF from an employee? Also, do we need to deduct PF from daily contract laborers? If yes, how should we calculate it?

Thank you.

Dear Pemmarajuswetha,

There is no minimum number of days required to deduct PF. 12% of the salary, whether it is on a monthly or daily basis, is to be remitted to PF.

Abbas.P.S

Where did this concept of minimum days of PF deduction come from? There is no such clause in the entire act. If anyone has suggested you to do something like that, please stop the same immediately.

Regards,
Ashutosh Thakre

There is no minimum number of days to qualify for EPF or ESI deductions. Even if an employee works for just one day and earns wages, ESI and EPF shall be deducted.

Previously, the minimum days for PF deductions were 60, but now there is no minimum requirement. This change applies to all individuals working directly or indirectly within the organization.

Please let me know if you need more information on this topic.

Dear Pemmarajuswetha, your approach to the contributing members in this forum seeking advice for your query is not proper. You must be very well aware that in this forum, more senior HR professionals are sharing their experience by giving suitable advice to the members in need. I think you are in HR personnel and should improve your language in approaching anybody, even if they may be your subordinate.

Employees' Provident Fund Scheme Eligibility

Now, coming to your query, there is no minimum qualifying period to admit anybody as a Member of the Employees' Provident Fund Scheme, 1952, irrespective of any category of employees. Even if they worked for less than one month, you still have to deduct their share. Initially, there was a requirement of 240 days in 1973, then reduced to 120 days in 1980, then 60 days, and finally 30 days. As of today, the EPFO has removed this eligibility criteria.

Regards,
Adoni Suguresh
Labour Laws Consultant