Are NGOs Required to Register for PF and ESI When Subcontracting? Seeking Clarity

Dear Sir/Madam,

My organization is involved in waste management work with a small (5) number of waste pickers subcontracting for a large company. This company requires PF and ESI registration. Therefore, I need to know whether NGOs are exempted from PF and ESI contributions or not.

Please assist me with this query.

Regards,
Ezaz Hussain

Dear Ezaz Hussain,

As per government directives, any agency engaged in the profession of employing manpower of 20 or more is required to be covered under the Employees' State Insurance (ESI), Provident Fund (PF), and the Contract Labour Act.

If your company employs fewer than 20 individuals, then you are exempt from ESI and PF.

Chennai.
Ibrahim