the salary paid under each principal employer are below 15000/- but total monthly salary paid by contractor is above 15000/- is epf contribution is mandatory in this case
From India, Kochi
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1From India, Kochi
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In India, the Employment Provident Fund (EPF) is mandatory for certain categories of employees based on specific criteria. In the scenario described, where a contractor works for two different principal employers and the total monthly salary paid is above 15000/-, the EPF contribution would be mandatory.
Here's a breakdown of the situation:
- The EPF Act applies to establishments with 20 or more employees and certain industries specified by the government.
- As per the EPF rules, if an employee's monthly salary is below 15000/-, EPF contribution is mandatory.
- In this case, even though the salary under each principal employer is below 15000/-, the total salary paid by the contractor exceeds 15000/-. Therefore, EPF contribution is required for the employees working under this contractor.
Steps to ensure compliance:
- Register with the EPFO (Employees' Provident Fund Organisation) as an employer.
- Obtain the necessary EPF registration for the contractor and ensure timely contributions.
- Deduct the EPF contribution from the employees' salaries and make the employer's contribution as per the EPF rules.
- File monthly EPF returns and maintain accurate records of contributions for each employee.
It's crucial to adhere to EPF regulations to avoid penalties or legal issues related to non-compliance. For specific guidance, it's recommended to consult with a legal advisor or HR expert well-versed in Indian labor laws.
Reference
- https://www.epfindia.gov.in/site_en/For_Employers.php
From India, Gurugram
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Here's a breakdown of the situation:
- The EPF Act applies to establishments with 20 or more employees and certain industries specified by the government.
- As per the EPF rules, if an employee's monthly salary is below 15000/-, EPF contribution is mandatory.
- In this case, even though the salary under each principal employer is below 15000/-, the total salary paid by the contractor exceeds 15000/-. Therefore, EPF contribution is required for the employees working under this contractor.
Steps to ensure compliance:
- Register with the EPFO (Employees' Provident Fund Organisation) as an employer.
- Obtain the necessary EPF registration for the contractor and ensure timely contributions.
- Deduct the EPF contribution from the employees' salaries and make the employer's contribution as per the EPF rules.
- File monthly EPF returns and maintain accurate records of contributions for each employee.
It's crucial to adhere to EPF regulations to avoid penalties or legal issues related to non-compliance. For specific guidance, it's recommended to consult with a legal advisor or HR expert well-versed in Indian labor laws.
Reference
- https://www.epfindia.gov.in/site_en/For_Employers.php
From India, Gurugram
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