Pf For This Case Scenario - Pdf Download

Dear Sir / Madam, Friends,
We are having at present 11 permanent employees in our payroll and are going to recruit 10 more contract employees in our payroll on fixed salary for period of two years. In this regard is it compulsary to provide for PF for the 10 new contract employees who are going to join soon, the existing 11 employees are having PF now. the min salary of new contract employees will be min 12000 gross pm

Dear Mr. Kravi,
If the 10 contracted employees are substantiated on your company's payroll then they are said to be in terms of On-Roll with your company where the Statutory benefits (PF, ESI) are applicable and your employer should be taking care of the same. If the contract employees are serving as consultants from a different company, they are on Off- Role employees as the salary, service charge and statutories are taken care by the actual employer.

Hi,
No the new employees will be on our payroll only , only thing is that they will be on contract with us, and other employees are permanent employees already working with us. So please advise as per this case scenario no payroll / contract is outsourced to third party,

Since the new contracted employees are on your payroll, statutory laws are applicable to your employer.

Please specify whether to provide PF or not, because when you mention statutory laws i dont know which, we are a trust coming under Societies Registration Act.

As per PF act (http://epfindia.com) under sec 1(3)a & 1(3)b Act applies to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are Employed.
So no need to worry about 10 new contract employees they won’t be covered under PF act.
Even though these employees are under contract (off-Rolls) (Mr. Kravi) covering PF & ESI and other statutory provisions is a worrying ting for the principal employer, Because every act says it’s the principal employer has to make sure and liable to apply any labour law.
If these 10 new contract employees are under a contractor (if they are Individual consultants then case is different) you have know that is there any additional number of employees are working under that contractor. Then you have to calculate the total Number of employees of that contractor according to that you have to apply the act
And also you have to check whether that contractor have b

Pls refer PF U/s.2(f) ' employee' means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of (an establishment) and who gets his wages directly or indirectly from the the employer ( and includes any person - (i) employeed by or through a contractor in or in connection with the work of the establishment ...
Automatically all employees are covered under the purview of PF. So you need to comply the act for all employees including contract workers.
S Rajasekaran

Dear Mr. Kravi
Your organiztion is already covered under EPF & M P Act since existing 11 employees are contributing to PF, hence :
1. You need to cover these 10 contarctual employees with PF, if employed by u directly on rolls of the company or through a contractor.
2. You need NOT to cover these 10 contarctual employees, if the employees were not covered in their previous company also they are aggreed not to contribute PF since they would be drawing wages more than 6500 per month.
R K Singh

Dear Mr.Ravi,
Till now you have engaged only 11 persons, so there is no need for registration under EPF & MP act. but now you are going to engage another ten persons in contract means your total manpower strength will come to 21, so now first you have to get a EPF account number for your establishment. Then you have to fix the basic salary for all the employees. if the basic is more than rs.6500 there is no need to deduct epf from the employees. As you stated that the minimum gross wages will be 12000, if in that case u can fix the basic as 10000 and no need for deduction for PF.
I am attaching EPF & MP act 1952 for ur reference also.
With Regards
S.Magesh

Dear Kravi,
Please state, whether you have receiving Monthly bill from Third party/Out sourcing Contractor.
IF YES: You are not required to file EPF for new contractual Employees, But You should collect appropriate filing record/certificate (EPF) from the contractor before settelling their each month invoice. Also you may please ref. their service Tax registration under Service Tax Act 1994. If they have service tax registration, you should pay service tax also.
Regards
Yethee
India & Middle East