The Employees’ Provident Fund Organisation (“EPFO”) has, through a Circular dated 1st February 2021, introduced a new facility in its unified portal enabling the employers to declare their contractors and the period of the contract so that they may view and monitor the compliances in respect of their contract employees reported in the ECR.
Through this facility, the principal employers can also view whether the employer’s share of EPF contributions paid by the principal employer has been remitted by the contractor for all contract workers or not.
This new facility will aid in the following:
- EPFO registered employers engaging employees by or through contractor(s) can add the details of contractor(s), contract amount, tenure & UANs of contract employees at Employer Interface of EPFO’s Unified Portal: https://unifiedportalemp.epfindia.gov.in/epfo/
- Principal Employers not registered with EPFO can register on above Portal with Income Tax TAN to receive Login/password for adding details of their contractors & contract workers.
- On adding contractor’s & employees details, principal employer can view through their login the employee wise remittance made by contractors through ECR for any wage month during tenure of contract.
- Principal employer can view whether the employer’s share of EPF contributions (13% of contract worker’s wages) paid by the principal employer has been remitted by the contractor in r/o all contract workers or not.
- The facility ensures ease of compliance with provisions of Sec 8A of the EPF Act read with Para 30 and 32 of the EPF Scheme, 1952 by Principal employers and compliance to provisions of Para 36-8 of the EPF Scheme, 1952 by the contractor establishments and extension of membership of Scheme and remittance of contributions in respect of all contract workers.
A write up on the procedure of registration as principal employer, adding contractor and employee details, compliance dash board for employers is attached for clarity and guidance of the Principal employers and contractor establishments.
Any doubts or queries regarding the facility may be addressed to the DD (IS) at NDC through email on harsh.kaushik@epfindia.qov.in.
Background:
The Employees Provident Funds and Miscellaneous Provisions Act, 1952 (“Act”) defines employee as any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets his wages directly or indirectly from the employer and includes any person employed by or through a contractor in or in connection with the work of the establishment.
Many employers outsource business processes of their establishment to contractors and also engage workers in or in connection with the work of the establishment by or through contractors and in such cases employer’s liability under Act is payable by the Principal employers. The contractors are registered independently as establishment with EPFO and they are required to report EPF compliance in r/o workers provided to their Principal Employers through Electronic Challan cum Returns. The Universal Account Numbers of the workers and the attendance / wage payment records are verified by the Principal employers to settle the claims. Thus, the EPFO has decided to deploy this facility which would ensure ease of compliance under the Act and the EPF Scheme, 1952.
Source: Employees’ Provident Fund Organisation
