Understanding PF Obligations: Do Contractors Pay When Laborers Are Absent or Idle?

Jayaramd123
A contractor deposits PF for his labor. If labor is absent or there is no work in any month, is he liable to pay his PF or not according to the Act? Also, please explain how to pay the PF amount for laborers.

Thank you.
Aniket Pathak
Dear Jayaram,

When it comes to paying PF for laborers, you need to upload the returns on the PF site like everyone else and make the payment through an online challan. For contractual laborers' PF, you must monitor it as the liability and accountability lie with the principal employer even for contractual workers. Keep in mind that PF is calculated based on Basic+DA of that particular month. If a worker is absent throughout the month and has no paid leave, then their salary will be zero, resulting in a PF contribution of zero.

Thank you.
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