As per my understanding, if the principal employer has 15 employees, then PF is not applicable. If the principal employer, who has 15 on-roll employees, appoints 25 contract employees as per the Contract Labour Act, then ultimately PF is applicable to the contract employees as the strength is more than 20.

My Query:

In the above case - Does the PF apply to a company whose strength is only 15? Your help in this regard will be highly appreciated. Waiting for senior's guidance.

Regards,
Vinayak

From India, Kolhapur
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Hi Vinayak, If that contractor having his own PF code ?? if it is so then, tell that contractor to pay PF for contractual workers..
From India, Bombay
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Dear Vinayak,

Please note that in case the total number of employees employed in any establishment, including contractual, is 20 or more, the provisions of the EPF are applicable to that establishment. As far as compliance is concerned, if the contractor is independently covered under the EPF Act, he has to ensure compliance in his code in respect of his employees, and the establishment has to deposit their own dues.

P K Sharma

From India, Delhi
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Mr. Vinayak,

Our company has only 3 employees on the payroll and 300 employees on contract. Employees on the payroll are not entitled to any statutory benefits, whereas contract employees receive ESI, PF, and PT benefits. I also have the same doubt and am awaiting an expert opinion.

Thank you.

From India, Bengaluru
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Supriyamd........ You are clearly violating the various labour laws if company employees are being deprived from the benefits. P K sharma
From India, Delhi
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@apex management. Has the no. 20 not amended to 10 recently. Please confirm. I think this amendment is applicable since April 2016. If yes, please share the notification or the link to it. Thank you!
From India, Bengaluru
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Mr. Carmel David,

While calculating the number of persons employed, all categories of employment, whether directly or indirectly, are considered. Therefore, the question of coverage on 10 instead of 20 for EPF does not arise. In one case, there are 15 direct employees and 25 contract employees, totaling 40. In the second case, there are 3 direct employees and 300 contract employees, totaling 303.

P K Sharma

From India, Delhi
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Apex Management,

I am also one of the employees, and I am not entitled to PF or ESI. That is the reason I asked about it. I should inquire with my employer on this issue. Thanks for enlightening me on this matter.

From India, Bengaluru
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