EPFO: Principal Employers Can Now Track EPF Compliance of Their Contractors

The Employees Provident Fund Organisation (EPFO) announced on Saturday the introduction of a method that will enable principal employers to monitor the EPF compliance of their contractors. The change will make it easier to monitor contractors and staffing agencies that handle firms' contracting needs, as well as audit receipt and issuance of EPF contributions by them. Contractors have been accused of receiving EPF dues from employees but only allowing partial contributions. It also stated "EPFO launches electronic facility for principal employers to view EPF compliances of their contractors."

According to the EPFO, authorized employers who hire employees via contractors can submit records about contractors and contract employees into the retirement fund organization's unified portal. Principal employers who have not yet enrolled can do so and review contractors' remittances. EFFO said that it will assist principal employers in ensuring that all contract employees employed by a contractor are registered with EPFO and "remit EPF contribution through Electronic Challan cum Return (ECR)."