Dear Team, kindly share any circular or documents which state that a person who joins on a retainership or consultant basis is not eligible for PF deduction as per the PF Act or any other retirement benefits.
Thanks,
Pradeep
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2Thanks,
Pradeep
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Hi,
Understanding the Role of Consultants
Consultants are individuals with specialized expertise in a particular field who are hired by employers on an assignment basis for a fixed tenure. These consultants act as advisors to employers and offer advice, thus there is no employer-employee relationship between them. Consultants raise invoices on a monthly or tenure-based basis, and their payment is considered a retainer fee subject to tax deducted at source. A consultant can work for multiple employers on the same day, whereas an employee is restricted to one employer. As consultants work on an assignment basis, they are eligible only for the retainer fee mutually agreed upon and not any other benefits applicable to employees.
Alternatively, if employees are hired under the guise of consultants and spend their entire time working for the employer, then their compensation, regardless of how it is termed, will be subject to PF deduction.
From India, Madras
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Understanding the Role of Consultants
Consultants are individuals with specialized expertise in a particular field who are hired by employers on an assignment basis for a fixed tenure. These consultants act as advisors to employers and offer advice, thus there is no employer-employee relationship between them. Consultants raise invoices on a monthly or tenure-based basis, and their payment is considered a retainer fee subject to tax deducted at source. A consultant can work for multiple employers on the same day, whereas an employee is restricted to one employer. As consultants work on an assignment basis, they are eligible only for the retainer fee mutually agreed upon and not any other benefits applicable to employees.
Alternatively, if employees are hired under the guise of consultants and spend their entire time working for the employer, then their compensation, regardless of how it is termed, will be subject to PF deduction.
From India, Madras
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SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc