Folks,

I have seen a topic posted by Sarita regarding PF & ESI deduction of contractual employees. I have some queries which are as follows:

1. If there are more than 20 contractual employees working as drivers (who do not receive any company benefits), is it compulsory to deduct PF & ESI? The payment for the services they provide to the company is Rs. 7000 (for their services) plus Rs. 4000 (for vehicle maintenance and petrol).

Regards,
Subramanian

From India, Delhi
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Dear,

There is ESI and PF that have to be deducted. If you have hired them through some contractor, then the contractor will deduct the same. If you have hired them directly, then you have to deduct and deposit.

In both cases, being the principal employer, you are responsible.

Regards,

JS Malik

From India, Delhi
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In case of the hire of a vehicle from a single contractor, and the contractor has employed only 2 (two) drivers to operate the vehicles (which is fewer than the 20 required by the EPF Act), is it mandatory for the principal employer to deduct and deposit PF?

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From India, Ghaziabad
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