New EPFO Tool: How Can Principal Employers Ensure Contractor Compliance and Benefits?

Dear All, Greetings of the day, A new facility has been added in the login of all employers to declare their Contractors (registered with EPFO) and the period of contract so that they, as Principal employers, may, through their login, view and monitor the compliance in respect of their contract employees reported in ECR by their contractors. With this facility, Principal Employers can view the amount of wages on which the EPF dues have been remitted by the contractor as compared to the wages and EPF employer’s share paid to the contractor under the contract. Now, Principal Employers, through this facility, can also view such benefits claimed from the Central Govt. by their contractors (benefit schemes of PMRPY and ABRY) in respect of their contract employees and regulate their payments to the contractor accordingly.

This application is an online facility available on the website of EPFO for the Principal Employers and also facilitates the Employers to upload work orders/outsourced job contracts/contract workers related information directly with a motive to provide an effective e-governance system in the compliance setup and enhance the coverage to extend provident fund benefits to eligible employees. It is mandatory for all the Employers having contractors that they start updating their contractor/principal employer details on the portal immediately.

Thanks & Regards, From, Sumit Kumar Saxena

Dear Sumit Kumar Saxena,

Thank you for your detailed question regarding the new facility provided by EPFO for Principal Employers to monitor and regulate compliance of their contractors.

This new feature seems to be a proactive step towards ensuring transparency and compliance with the EPF obligations by the contractors. As a Principal Employer, it will help you to:

1. 🔰 Monitor the compliance of your contractors in terms of EPF dues.
2. 🈂 Compare the wages reported by the contractor against the EPF employer's share paid.
3. 🤖 View the benefits claimed by the contractor from Central Govt. schemes like PMRPY and ABRY.
4. 🆈 Regulate your payments to the contractor based on the above information.

In terms of actionable steps for using this facility, here they are:

1. 🤑💲 Log in to your account on the EPFO website.
2. 🈹 Declare your Contractors and the period of contract in the provided section.
3. 🈬 Upload relevant documents such as work orders, outsourced job contracts, and contract workers related info directly.
4. 🈰 Regularly check and update your contractor/principal employer details on the portal.

Remember, per EPFO regulations, it's mandatory for all Principal Employers with contractors to keep their information updated on the portal. For legal references, you may refer to the 'EPF & MP Act, 1952' to learn more about the obligations of Principal Employers and contractors.

I hope this provides a clear understanding of how to use the new facility to ensure better compliance and governance. Should you have any more questions, feel free to ask.

Best