Several companies in India engage with contractors to manage their employees. In this regard, there have been complaints and concerns that contractors have been collecting Employee Provident Fund dues from employees but making only partial deposits.
Addressing this issue and safeguarding the interests of employees, the Employees Provident Fund Organisation (EPFO) has launched a facility that allows principal employers to track EPF compliance of their contractors.
Now the principal employer can effectively track and view the EPF compliance of their contractors. The registered employers can add details of contractors and contract employees through the unified portal of the retirement fund organisation.
Those employers who haven’t registered yet can get them registered and review the compliance of their contractors.
This facility is available on the website of EPFO for the Principal Employers (PE). They can upload work orders/ outsourced job contracts/ contract workers-related information. This is done to help with EPF compliance of their contractors and enhance the coverage to extend provident fund benefits to eligible employees.
Once an employer adds the contractor(s) details, employee-wise remittances made by the contractor(s) through the electronic challan-cum-return (ECR), can be viewed.
Apart from securing the interests of employees, the move also paves the way for expanding the formalisation of economy.