Navigating EPF Coverage: Do Contractors with Less Than 20 Employees Need Inclusion?

Greetings all,

We have 800 permanent employees and 39 contract employees from 6 different contractors (contractor-wise strength is 8, 4, 9, 8, 2, 8 respectively). Do we need to cover them under the EPF act? Are we required to cover those employees even if the number of individual contractor employees is less than 20?

Please clarify my doubts. Also, please specify the section/rule for further references.

Thank you in advance...

When your establishment is covered under PF, you will have to cover all contract workmen - even if the Contractor engages a single worker.

N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
Email: natraj@sakthimanagement.com

Please find attached a copy of the Circular and an extract of Paragraph 26 under the EPF Scheme regarding the coverage of every employee under the EPF Act for your information.

N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
E-mail: natraj@sakthimanagement.com

Hello Everyone, is the principal employer liable to pay bonuses to their contract employees? If yes, then what should be done if he is denying payment?

Warm Regards,
Garima Vyas