Out sourcing_pf contribution

pranith reddy (Querist) 09 December 2011 This query is : Resolved
Dear Experts,

This is regarding PF contribution by employer if he employs less than 9 employees including 4 On Company-payroll and remaining 5 (Out Sourced) on Contractors Payroll.

as per revised EPFO act If the organisation has more than 10 employees it need to get registered under EPFO act and need to contribute for PF.

Here my contractor who employees more 100 workers for other companys also employs 5 for my company.

Here my question is "Do I need to Pay Employers share to the contractor towards EPFO" as am employing only 9 workers directly & indirectly?

Thanking You,

Praneeth Kumar Reddy
9550480373
Hyderabad.

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Guest (Expert) 09 December 2011
The question arises, whether you ar paying the wages of employees as a part of contract amount to the contractor, or have taken them direct on your rolls to pay the salary directly without the intermediary of the contractor every month?

pranith reddy (Querist) 09 December 2011
Sir,

Company pays directly to 4 employees who are on pay-roll. and remaining 5 employees are paid by contractor. here contractor receives wages from company. now totally my company has 9 employees , Do i need to take PF registration and pay PF contribution every month??

Thanking you,

praneeth reddy
9550480373

Guest (Expert) 09 December 2011
Your liability, as principal employer, is only to ensure that the contractor follows the relevant service laws for his employees he provided on contract basis. If he fails, the principal employer is also held responsible for that.

Rajeev Kumar (Expert) 09 December 2011
Agree with Dhingra JI

Raj Kumar Makkad (Expert) 09 December 2011
In the given matter, you have no liability towards the employees engaged by the contractor. On the other hand, contractor is liable for the EPF contribution against all his 100 employees out of which 5 are working in your organization.