EPF is a retirement fund savings scheme wherein you and your employer both contributed 12% of your basic pay to for EPF account. An individual can count onto the EPF scheme to provide relief under such circumstances. But these days, the salaried employees class has been subdivided into Part-time Contract labour and full-time employees.
It is crucial to note that full-time employees are definitely considered under EPF scheme. But, what about the contract labour? Are they subjected to EPF benefits? So, in this article, we would through some light on the same. Are workers involved in contract labour subjected to EPF benefits?
With increasing competition in the business environment, there is a crux in the market to cut off the expenses. So, the companies try to do so by cutting their expenses by hiring the workers on contract bases.
Moreover, with the cutting edge competition in a country like India, where the skilled employees are available for lower wages, the contract-based labourer or employees are available in a reasonable amount.
So, the interest in these types of individuals is compromised. But when it comes to EPF contribution, you can have all the benefits of the EPF scheme. For this, you need to ensure that the company for which you are working has enrolled you as an employee under the EPF scheme..
Yes, it the duty of the company for whom you are working on contract bases to provide you with EPF enrolments. The company will recover these dues form the contractor. In case the contractor fails to deduct and submit the EPF dues to the company, then the company has to pay in the EPF contribution amount.
Later on, the company settles the account with the contractor during the final payment of the services. So yes, you, as contract labour are subjected to EPF benefits. But, it is also important to note here that the interns are not covered under the contract workers.
When you are employed on a contract, you are mostly not subjected to the various internal benefits that the company provides to its full- time permanent employees. These benefits could involve having a paid lunch, a paid teambuilding trip, etc. But apart from it, when it comes to EPF benefits, your interests are fully represented by the EPFO organization.
The EPFO organization constantly keeps a check on the practices currently being followed in the employee market. Moreover, it senses that the interest of a particular group of individuals is not represented in the market. It amends within the guidelines to serve their interests too in a rapid manner.