Contract labour is one of the significant forms of employment prevalent these days. Moreover, these contract laborers are ready to work on lower basic pay. And there skills can be learned while working to get a secured job in the future. Many times, the interests of these workers are neglected by the contractor to gain higher profits.
But when it comes to EPF benefits, the interest of the contract labors are also represented on the front. The EPF does not differentiate between a contract worker and a full-time employee. There is also a scenario that if there is a case wherein the Contractor fails to deduct and submit the PF amount from the contract workers then what is to be done?
The very definition of the employee mentioned in the EPF norms, States that any individual employed on wages through the employer or the contractor of the company is subjected to EPF benefits. Both you and your employer both contribute to your EPF account. You and your employer both provide 12% of your basic pay to your EPF account.
But there have been cases where the contractor fails to deduct and submit the EPF contributions. A contractor might want to save on to the employer’s contribution towards the EPF account. So, he/she might keep you dark. You might come to know of this situation and might be wondering want to do. So, in this article we, will through some light upon the same.
What To Do if the Contractor fails to deduct and submit the PF amount of the contract workers?
A solution to tackle the situation:
When it comes to EPF benefits, your interests are not compromised at all. The EPFO has derived the norms and principles to make the process fully transparent. In the situation mentioned above, the company or the primary employer is liable to ensure that the contract labourers receive the EPF benefits. If the contractor fails to deduct and submit the EPF contributions.
Then, as per the rules of EPFO para30(3); the company where they are hired has to provide in the EPF benefits to the contract workers. And later on, during the final Settlement, the company can settle/ recover the amount from the contractor. As an employee, you can contact the companies HR department about the absence of EPF contributions into your account. And if the company is a one that looks after it’s workers, then you would receive the solution towards the same in a timely manner.
The benefits that EPF offers are unmatched in the industry. The rate of interest that it provides is one of the best in the markets that stands out to be 12%. Moreover, other benefits, namely tax-free lump sum withdrawal, part withdrawal, etc. are the things that set EPF apart from other schemes in the market. There may be times where you would feel that extra in-hand salary would be better to let go EPF scheme. But you must remember that an individual earns to live life with a plan for his/her future. The contribution that you would be able to collect over years of service would be one just the greatest financial support as you reach your retirement age. So always pursue your employer for EPF contributions.