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ARTICLE · 12 MAY 2022

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The Employees' Provident Funds and Misc. Provisions Act, 1952 (EPF Act) requires employers to pay both the employer's and employees' share of provident fund (PF) contribution...

IndiaEmployment and HR
Tushar Shah, Principal Associate, Vaish Associates Advocates
Tushar Shah, Principal Associate, Vaish Associates Advocates
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1.

The Employees' Provident Funds and Misc. Provisions Act, 1952 (EPF Act) requires employers to pay both the employer's and employees' share of provident fund (PF) contribution to Employees' Provident Funds Organisation (EPFO).
2.

If these employers avail services of contract labours, they are primarily responsible for deducting PF contribution on behalf of contract labours and deposit it with the EPFO. Under EPF Act, employers availing services of contractors are referred to as 'principal employers' (PE).
3.

In practice, PE avail services of contractors having separate PF registration code and pays such contractor both employer and employees' PF contribution as one of the components of services charges.

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