Dear All,
We are a contracting company, we filled a man power based on the project size and it's a short time commitment with the labours under daily wages, we have not covered them under EPF but EPF inspectors visited our office and check all our records including balance sheet, they asked based on the balance sheet to pay the EPF with penalty for the outstanding balance comparing to salary register and balance sheet.
But all the labours are getting minimum of Rs. 400/- per day and they have received basic salary of Rs.12000/- average per month, as per the EPF Act they came out of EPF coverage as per the employer consent of EPF Act.
We did not submit the Form 11 (Declaration by a person taking up employment in organisation with EPF) but in this form there is no column to mention that no need to cover EPF for me (Worker).
So, can anyone help me to come out of this problem and Declaration procedure.
Thanking You,
K K Dhinesh Jebaraj
Mob: 08939883941

From United States, Toledo
As per EPF & MP Act, all employees drawing wages upto Rs.6500 pm and those employees who had been member under the Act but have not withdrawn full benefits as per sec 69 of the EPF Scheme irrespective of wages exceeding Rs.6500 are required to be covered under the Act subject to coverage of yr establishment under the Act.

Interact with each and every worker to understand whether they were members of the Fund earlier and if so had withdrawn all money. Secondly, check up salary sheets to understand whether they were drawing wages more than Rs.6500 pm from date of joining yr company had they worked for whole month. If they were members earlier but withdrawn balance and their normal monthly wages were more than Rs.6500, the workers are not required to be covered.

If these workers are not required to be covered, action to get Form 11 may be initiated with retrospective effect and keep on your records. Lapse in submission can always be got condoned.

Proceed cautiously but judiciously and rectify the situation.

Best of luck.

From India, Mumbai
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