We are a Central Govt. PSU going to engage contract labour for operation and annual maintenance of various electrical services in the office premises. We have applied for Principal Employer certificate also. We need to have two set of different contractors A & B having 12 & 4 workmen respectively. All the workmen will be new entrants to PF. As per the present minimum wages all their monthly wages are above Rs.15000/- We need to know:
(1) Since monthly wages is above Rs.15000/- whether they need to comply PF norms?
(2) In case a labourer works for about 20 days his monthly wages will be less than Rs.15000/- in which case whether the PF, PF admin & EDLI (both employer/ employee shares) are to be paid?
(3) Since the monthly wages are less than Rs.21000/- we hope that they need to comply ESI act, isn’t it?

From India, Chennai
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Dear Selva,
Please find reply to your queries as below :
wages all their monthly wages are above Rs.15000/- We need to know:
(1) Since monthly wages is above Rs.15000/- whether they need to comply PF norms? - If contract employee provided by the contractor was ever a member of PF then PF deduction has to be their eventhough salary limit crosses Rs. 15000/-. For rest it is ok if PF is not been contributed above Rs.15000/- salary.
(2) In case a labourer works for about 20 days his monthly wages will be less than Rs.15000/- in which case whether the PF, PF admin & EDLI (both employer/ employee shares) are to be paid? - NO
(3) Since the monthly wages are less than Rs.21000/- we hope that they need to comply ESI act, isn’t it? - Yes


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