The Supreme Court, in a recent judgement, has taken a significant decision, which will benefit contractual employees working in government, semi-govt & private organisation. The top court has said that contractual employees will get same provident fund (PF) benefits as permanent employees.
As a result, contractual employees working in a municipal corporation, zila parishad, railways, LIC, airport authority, metro, govt., semi-govt. offices, local semi-govt. organizations, PSU's will also get PF benefits in line with permanent employees.
Supreme Court has stated that the responsibility of paying the PF of employees working on a contractual basis, based on section 6 (2) of ‘Employees Provident Fund and Other Provisions Act 19’, was given in this judgment.
Therefore, it is the responsibility of the employees of the Provident Fund Organization (EPFO), whether it be permanent or contractual, government, sub-government offices, institutions, to ensure that PF contributions are deposited in their accounts.
Worth mentioning here is that many private companies, local self-government organizations, government-sub-government offices employ contractors for various activities. The companies hiring such contractors are called the main owners. These contractors are responsible to deposit the PF amount of their employees to the EPFO office.
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