Has any Principal Employer taken benefit under EPF - PMPRY scheme on behalf of Contractor? Please share your guidelines

sagar_ghule
1. Contractor is an independent establishment registered with EPFO. So if he have employed employees in semi-skilled and skilled categories whose wages are less than Rs. 15,000/- and who had not worked with any EPFO registered establishment or had a UAN prior to April 2016 can be benefitted under this Scheme. This will same follow for Organisation as Principal Employer according to me - Please confirm
2. Since Government will be paying 8.33% contribution of contractor for 3 years, as a Principal Employer can we choose to recover it from Contractor? What process have to be defined by your Organisations in this regards. Can anyone share their practices / views / guidelines in this forum. It will be great help from you all.
Thanking you.
Sagar Ghule
7506254580
Glidor
The benefit is available to the contractor itself, who has submitted their contribution in their own code
if the principal employer has enrolled the contract employees in their epf account then only the benefit is available to the principal
sagar_ghule
Well Noted Sir.
My query is different.
We as a Principal Employer reimburse a particular Manday rate to contractor which includes PF & ESIC contribution rate / cost. Under PMPRY scheme contractor will get refund of the 8.33% while during generating and paying challan amount. So it will be a benefit to contractor since we as Principal Employer had paid him and he also received refund from EPF. My query is can we recover the amount from the contractor and if yes then how. What process has to be followed?
Glidor
In the simple words the benefit is to be availed by the immediate employer who has encouraged to provide fresh employment and make it covered under EPF also,
as the principal has no role in direct recruitment of contract employees, so the benefit will always to be retained by the employer who has enrolled them in their own code.
sagar_ghule
Ok. Thanks. Noted.
But some of the locations / company unit are recovering such amount which was paid by them and in respect of such employees the contractor received refund.
Glidor
There is no such rule or norms prescribed, however if the principal and contractor both agrees upon any point, then it is between only both of them, not to be taken a rule or concept
Mahesh hmm
Hi
If there are some employees whose salary is less than 15000/- just stopping to pay 8.33% pension fund is ok or should we have to give the list to concerned PF department? and in the mean time if the salary crosses 15000/- still govt will contribute for 3 years?
Kindly let me know.
Glidor
@Mahesh
This is PMRPY post, and PMRPY scheme allows certain subsidy "after" compliance of data of new employees, it never ask the employer to stop any contribution payable.
Das Debraj
It is clear from PMRPY scheme and the above discussion, PMRPY benefit is to be availed by the immediate employer only.
Further please guide us, what can a contractor (immediate employer) do if principal employer wants to recover the amount forcefully from the contractor?
Das Debraj
Sir, please guide in this regards.
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