How Can We Offer EPF Benefits Through a Third-Party Without Registering Ourselves?

Dear Seniors,

If we have 30 employees, in which 15 employees are under EPF Basic Band (Rs. 15,000) and the other 15 have a basic salary above the EPF Basic Band.

We don't want to register for EPF but we want to provide EPF facilities through a third-party manpower provider who will manage their payroll.

Employee Coverage for PF and ESI

Your establishment has 30 employees. Even if all the employees' salaries exceed Rs 15,000, your establishment will be covered. It is not the salary but the number of employees that matters for registration. For coverage of establishment employees engaged through an outsourced vendor or contractor, they will also be counted. Therefore, by routing a few of your employees through a manpower provider, you cannot prevent your establishment from coverage of PF or ESI.

Retrospective Coverage

Another important thing is that your establishment will be covered with retrospective effect from the date on which the number of employees became 20.