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MARIMUTHU P (Legal Practioner)     15 April 2012

S 7a epf act

Dear Sirs,
Please clarify: A company has deployed persons on consolidated fees to another company 
for doing work. The designation in their appointment is Marketing executive. Both the 
companies not deducted the EPF contribution from the fees paid to the workers thinking
that the EPF contribution need not be deducted on the fees paid as they are working on 
consultant basis. whereas the EPF office is claiming that the EPF should have been deducted even from the fees. 
Hence initiated a case against the company who have deployed the manpower. 
Please clarify whether the manpower deploying company is under liability to deduct EPF 
contribution from the fees paid to the workers? Is the company who have taken the 
manpower not liable to deduct the contribution of EPF?
MARIMUTHU.P 

Advocate



Learning

 1 Replies

Sudhir Kumar, Advocate (Advocate)     17 May 2012

PF is admissible even on piece rates wages.  The commission paid to the sales employee is based on the pieces they sell.


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