Contract Staff PF Deduction

Contract Staff of the company also are eligible for the PF contribution but their PF contribution needs to be done by the Contractor (Staffing Company) that employs them as contract staff on the Premises of another company (or) for another company.

Example: A consultant from the company “CompanyA” might be working on a project for “CompanyB”, in that case, the consultant’s PF would be contributed by the “CompanyB” as that’s where he earns the salary from)

Contract Staff & PF Contribution

• Duties of the Principal Employer
• Contract Employer PF Contribution FAQ
  • Whether contract staff eligible for PF Contribution?
  • My contractor is not paying PF but deducting PF from my Salary. What should I do?
  • Whether a contract company can be exempted from PF Contribution?

Duties of the Principal Employer

The principal employer is the company where Contract staff are employed whereas they are on the payroll of different companies. Here are some of the obligations of the company which employs you as contract staff

• The Employer must ensure Contract staff are covered under the PF from the company where they draw the Salary
• Principal Employer must allow bills only ensuring that the contractor has enrolled all the eligible employees to the PF
• Employer should check whether EPF Remittance is made by the Contractor by using the Establishment search services.
• It’s the duty of the Principal Employer to check whether the Contractor has activated UAN for all employees
• Principal Employer can recover all the EPF dues from the Contractor if the contractor has not paid the PF for the employees

Contract Employer PF Contribution FAQ

Whether contract staff eligible for PF Contribution?

Yes. The contract staff is also eligible for the PF Contribution but their contribution will be through the contractor rather than through the employer where they are currently employed

My contractor is not paying PF but deducting PF from my Salary. What should I do?

You can raise the issue with your Principal Employer. If your employer also doesn’t do anything. File a complaint at the PF Complaints portal.

Whether a contract company can be exempted from PF Contribution?

All companies over 20 people are eligible for PF contribution. This applies to the contractors also. Unless if the majority of employees of the contracting company opt for exemption, the contracting company is not exempt from PF contribution.