Applicability of provident fund for contract employees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2011 Whether employees working in a Government Company on Contract basis for a period of 3 years (continuous service) is eligible for provident fund benefit? Kindly note that, the there is employer –employee relationship exists and the company is having a staff strength of more than 1500 staffs.

I have read that, it is a statutory requirement to cover the employees under PF scheme who draws a salary of less than Rs.6501 per month.

What is the position of the DIRECT employees working on CONTRACT BASIS who draws a salary of more than Rs.6500, regarding the eligibility of PF benefits? Is there any statutory violation, if the company does not cover these employees under PF scheme?

CA CS PRASHANT

CA CS PRASHANT (Expert)
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20 December 2011 From the question it is very clear that the government company is the principal Employer and as per the provisions of PF act even principal employer is statutorily liable for the same.

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2011 Dear CA CS Prasanth, what is the implication of that limit of Rs.6500?