Pf exemption - contractor paid on tonnage basis deploying 6 to 7 people

Hellow All,
1. I have around 25 employees who were getting basic+da more than 15000/- and we are paying PT is this OK for pf exemption.
2. I have a contractor to whom we are paying tonnage basis he is deputing around 6 to 7 people for work daily some days only 5 to 6, When i asked him to pay PF he is explaining that he is paid on tonnage basis and he is deploying very few people for work as per act,Is it ok or how principal employer is responsible.

1. PF coverage continues in spite of the present wages exceeding the wage limit (presently Rs. 15,000/-) set under the PF Act 1952 provided they were already covered. So pl check this position.
2. The applicability of PF Act depends on the number of persons working in the establishment. As the contractor labourers are working in your establishment and it being a covered establishment as at present, the coverage extends to these labourers too. Mere fact that the contractor has only 5-7 labourers does not help you to avoid the liability under the Act . It is pertinent to remember that PF Act puts the onus of coverage on the Principal Employer. So, as the P.E. it is your legal liability to ensure their coverage. I presume that the contract is 'in or in connection with the work' of the establishment and is not a one time activity not connected with your business.