Directions for Compliance with Provident Fund/Pension Scheme/EDLI Scheme
The Regional Provident Fund Commissioner has issued the attached circular dated nil, with the following directions to all employers regarding employees hired through contractors in their establishments:
• Ensure PF Payments for Contractual Employees
1. The Principal Employer should ensure PF payments for all their contractual employees, either in their own PF code or a separate sub-code meant for employees employed through contractors. If the Principal Employer does not wish to use their own code, dues can be deposited by the Principal Employer in the PF code number allotted to the contractor after obtaining a copy of the separate Electronic Challan cum Return (ECR) and e-Challan from the contractor. The ECR is an employee-wise monthly return showing PF wages and contributions, etc.
• Obtain Salary/Wages Register and ECR
2. The Principal Employer should obtain copies of the salary/wages register signed by employees, indicating the PF account number, along with a soft copy of the ECR. They should ask the contractor to deposit a separate e-Challan for employees employed through the contractor. Depositing one challan for labor supplied at various establishments keeps the Principal Employer in the dark and provides an opportunity to cheat both the Principal Employer and employees. Many contractors show a copy of one consolidated challan to several employers without linking it to the ECR.
• Verify Before Releasing Payment
3. The Principal Employer should request the wages/salary register and ECR challan before releasing payment to contractors. If not, contractors may flee or vanish, leaving PF dues for employees employed through contractors unpaid. The negligence of the Principal Employer does not absolve them from the statutory liability mentioned above.
• Cross-Check Through EPFO Website
4. To further cross-check, the Principal Employer can verify the veracity of the challan through the EPFO website with reference to the TRR number and the list of employees whose contributions have been deposited.
• Legal Compliance and Liability
5. It is made clear that making payments to contractors in contravention of legal provisions will not constitute a valid discharge of statutory obligations, and the Principal Employer will be liable for action specified under the Act. It is unacceptable if the Principal Employer merely produces some copies of the contractor's challans without linking them to the ECR copy showing employee-wise PF dues regarding contractor employees.
From India, Delhi
Acknowledge(2)
Amend(0)
93The Regional Provident Fund Commissioner has issued the attached circular dated nil, with the following directions to all employers regarding employees hired through contractors in their establishments:
• Ensure PF Payments for Contractual Employees
1. The Principal Employer should ensure PF payments for all their contractual employees, either in their own PF code or a separate sub-code meant for employees employed through contractors. If the Principal Employer does not wish to use their own code, dues can be deposited by the Principal Employer in the PF code number allotted to the contractor after obtaining a copy of the separate Electronic Challan cum Return (ECR) and e-Challan from the contractor. The ECR is an employee-wise monthly return showing PF wages and contributions, etc.
• Obtain Salary/Wages Register and ECR
2. The Principal Employer should obtain copies of the salary/wages register signed by employees, indicating the PF account number, along with a soft copy of the ECR. They should ask the contractor to deposit a separate e-Challan for employees employed through the contractor. Depositing one challan for labor supplied at various establishments keeps the Principal Employer in the dark and provides an opportunity to cheat both the Principal Employer and employees. Many contractors show a copy of one consolidated challan to several employers without linking it to the ECR.
• Verify Before Releasing Payment
3. The Principal Employer should request the wages/salary register and ECR challan before releasing payment to contractors. If not, contractors may flee or vanish, leaving PF dues for employees employed through contractors unpaid. The negligence of the Principal Employer does not absolve them from the statutory liability mentioned above.
• Cross-Check Through EPFO Website
4. To further cross-check, the Principal Employer can verify the veracity of the challan through the EPFO website with reference to the TRR number and the list of employees whose contributions have been deposited.
• Legal Compliance and Liability
5. It is made clear that making payments to contractors in contravention of legal provisions will not constitute a valid discharge of statutory obligations, and the Principal Employer will be liable for action specified under the Act. It is unacceptable if the Principal Employer merely produces some copies of the contractor's challans without linking them to the ECR copy showing employee-wise PF dues regarding contractor employees.
From India, Delhi
Acknowledge(2)Amend(0)
Thank you for the update and important information. However, in the circular, the date and reference number are not mentioned. Could you please resend the circular with the complete date and reference number? I would be very thankful to you.
Regards,
P.S. Singh
Paramjeet Singh
From India, Dehra Dun
Acknowledge(0)Amend(0)
Regards,
P.S. Singh
Paramjeet Singh
From India, Dehra Dun
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF-Know Employees Provident Fund-CHART-L-4. doc
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf