In companies, the practice of hiring employees on contracts is in full swing. This has increased further in the Corona crisis.
Companies pay all types of payments to contractors as per EPF rules, but many times contractors do not deposit the amount in EPF account of their employees. Grievances were now getting high from the contractors for not giving PF from the companies to the workers. In such a situation, the EPFO has decided to provide an electronic facility to the companies to keep an eye on the contractors so that they can increase the strictness on the contractors.
With this new initiative of eFIFO, it will be easy to keep an eye on the PFs given by the contractors and the labor providing companies. At present, the companies engaged in the work do not have any such facility so that they can know whether the contractor has deposited the amount in the EPF account of the workers. Also, companies have to rely on the words of contractors for the amount and when they are deposited. Experts say that many times this creates a very uncomfortable situation because employees start blaming the company for which they are working. While companies do not have specific information about the bank accounts etc. of such employees. Experts say that this new facility of EPFO will curb the arbitrariness of contractors.
Complaints were being received for PF grab
Companies also pay contractual workers under standards. However, she does not pay salaries directly to those employees and pays them to their contractors. It also includes the payment of PF. But there were complaints about the contractor not taking the PF from the companies and giving it to the workers. At times only partial payment was being made. After this, the EPFO has taken this step to curb it.
Employees will get facility
The government has also directed to provide other facilities along with EFF deduction while tightening labor rules. Companies are not paying employees directly because most of the work is on contract. In such a situation, with the new initiative of EPFO, companies will be able to keep an eye on the contractors and take timely steps so that the employees will not have to face problems.
You will get information on just one click
The main companies will have to enter the details of the contractor and its related employee in the form given on the portal of EPFO. While doing so, the details of the contractor and that employee will come. In this, it will be easily found that the contractor has not deposited the amount in the EPF of the employee and if it has been deposited, then how much amount has been deposited. According to the EPF rules, 12 per cent of the basic salary of the employee is deposited in the EPF account. Companies also deposit the same amount.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
