Are Tonnage and Piece Rate Contractors Covered Under the EPF Act? Seeking Clarification

Dear all,

Greetings.

We have 600 employees in Roll (Permanent) and 60 employees in Off Role (Contractors). The contractors are service contractors working on a Tonnage and Piece Rate basis. Additionally, all the contractors are employed below 10 employees. Here, our doubt is whether we need to cover the Tonnage and Piece Rate employees under the EPF Act.

Requesting clarification on my doubts, with the relevant Section or Rule.

Thanks in advance.

Regards,
Pooja

Thank you, sir, I need some more clarification on this:

1) Do we need to cover employees who are working on tonnage/piece rate basis?

2) If tonnage employees are getting more than 15000 of basic salary and they are first employed and not having previous membership.

Thanks in advance.

Regards,
Pooja

I refer to your query. Precisely speaking, the definition of an employee is inclusive and is widely worded to include any person engaged in connection with the work of an establishment and is paid wages either directly or indirectly, in connection with the work of an establishment and is paid wages.

The above definition is as per Section 2(F) of the EPF Act. (Please note the words "any person engaged in connection with the work of an establishment, as is paid wages either directly or indirectly")