Epf eligibility for service providers

Ramaswamy.T (Querist) 05 October 2021 This query is : Resolved
Can the employers cover their Contract Service Providers (who are not in regular payroll' under EPF if the Service Provides like to avail the benefit?

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This discussion clarifies whether employers can voluntarily cover contract service providers under the EPF scheme. While EPF is generally mandatory for eligible employees, the key is understanding the nature of the 'contract of service'. Experts suggest that if the relationship is genuinely one of employment, even for contract staff, they can qualify for EPF contributions. The principal employer retains responsibility for ensuring these welfare benefits are extended to contract employees, even if the contractor handles the EPF disbursement.

kavksatyanarayana (Expert) 05 October 2021
According to Section 2 of the EPF Act 1991, “A person who is employed under a contract of service or apprenticeship, as long as both parties understood that it is a contract of service, the employee qualifies for EPF contribution. It is preferable to have a written employment contract.

Dr J C Vashista (Expert) 06 October 2021
The query is being repeated third time, which will not change opinion and advise of experts but it is ridiculous and absurd to repeat same story time and again.

KISHAN DUTT KALASKAR (Expert) 06 October 2021
Dear Sir,
I agree with the opinion of Expert Kavksatyanarayana.

Ramaswamy.T (Querist) 06 October 2021
Thank you Experts M/s KavakSatyanarayana and Kishan Dutt for the kind reply.
Sir, Dr.Vashista, there was no repetition of queries. As the first query had not reflected what I thought to ask, there was the necessity to post a clear question for the kind attention of Mr.KavakSatyanarayana. I received yesterday a reply from an expert without understanding what I asked, I replied to him which was counted by your good self as a third one.

Pradipta Nath (Expert) 07 October 2021
PF and ESIC are mandatory whether one wants to or not, provided the eligibility criterion is meet up.

krishna mohan (Expert) 07 October 2021
It is a welfare legislation and employer has responsibility to comply. If the employment is on continuous basis with fixed working timing like any industrial establishment employer to cover all eligible contractual employees.

Ramaswamy.T (Querist) 07 October 2021
Thank you experts for your replies. The said firm is not legally bound to register under PPF Act. The firm is ready to register under EPF Act volunteerly. The doubt is whether contract service providers will also be covered.

Pradipta Nath (Expert) 07 October 2021
The contractor if registered under epf and disbursing epf, will be sufficient. But it the responsibility of the principal employer to see that the welfare is extended to the contract employees.

Ramaswamy.T (Querist) 07 October 2021
Thank you M/s.Pradipta Nath, Krishna Mohan, Kishan Dutt,kavksatyanarayana and others for their time and efforts to answer my query

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