I have a query regarding the deduction of PF contribution for daily wage workers who work less than 20 days. For example, if a company is covered under the Provident Fund Act and employs 3-4 people for 5-10 days on a daily wage basis, is it mandatory to deduct PF contributions for these individuals?
Thank you.
From India, Jalandhar
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2Thank you.
From India, Jalandhar
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Your query is not clear. Please provide more information regarding the nature of work in your organization, the type of workers engaged, the total strength of your organization, whether the workers are under contract or direct employees, and whether the employment is temporary or permanent, etc.
Provident Fund Deduction Guidelines
If a person is engaged on a regular basis for normal work, then you must deduct the PF even for 1 day of work. However, if the work is of a temporary or emergency nature, then you do not need to deduct the PF. In such cases, you must be able to demonstrate that the work was temporary and emergency in nature and not part of a continuous activity when questioned by the PF Inspector.
From India, Kumbakonam
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Provident Fund Deduction Guidelines
If a person is engaged on a regular basis for normal work, then you must deduct the PF even for 1 day of work. However, if the work is of a temporary or emergency nature, then you do not need to deduct the PF. In such cases, you must be able to demonstrate that the work was temporary and emergency in nature and not part of a continuous activity when questioned by the PF Inspector.
From India, Kumbakonam
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Yes, Boss is right. I would further like to clarify that under Section 2(f) of the FP Act, the definition of an employee has been specified, which does not include any provisions for casual workers. There are only two tests for it: 1. The person must be employed on wages. 2. He must be employed in connection with the work of the establishment. Rest assured, Mr. Boss has already advised.
Regards,
Pkjain
From India, Delhi
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Regards,
Pkjain
From India, Delhi
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Employee Provident Fund and MP Act, 1952.pdf
Provident Fund Act.ppt