Dear All,
How to Calculate PF & ESI EE and ER contribution on Piece rate work done by CL? On Total Piece rate Bill Amount? (Example: Total amount of Rs.245000/- for work done under Piece rate by a contractor) or number of contract labour worked / number of man days (i.e., 1000 mandays @ Rs.215 Unskilled wage) to complete the Rs.245000/-. Here we are working based on the total work amount of Rs.250000/-. If I am wrong, please correct me/advice me. The agreement between the company and contractor is on a Piece rate basis, and the rates for each job are fixed.
Regards,
K. Sripad Kumar
From India, Karimnagar
Acknowledge(0)
Amend(0)
25How to Calculate PF & ESI EE and ER contribution on Piece rate work done by CL? On Total Piece rate Bill Amount? (Example: Total amount of Rs.245000/- for work done under Piece rate by a contractor) or number of contract labour worked / number of man days (i.e., 1000 mandays @ Rs.215 Unskilled wage) to complete the Rs.245000/-. Here we are working based on the total work amount of Rs.250000/-. If I am wrong, please correct me/advice me. The agreement between the company and contractor is on a Piece rate basis, and the rates for each job are fixed.
Regards,
K. Sripad Kumar
From India, Karimnagar
Acknowledge(0)Amend(0)
Since the total sum payable to a contractor will include his service charges, you have to split the wages part (whether piece-rated or time-rated), and contribution is to be worked out on that wages part alone. For that, you have to collect a statement of actual wages paid to his workers. You can work out the employer's contribution based on that. Since the employees' share is payable by the employees, it will help you to advise the contractor on the amount deductible from the employees.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Dear K.Sripad Kumar ji,
Your post is one year old which came to my reading today itself. With due respect to Madhu ji, I though of replying you as under:
Your contract employees should get wages for 8 hours of work not below the rate as prescribed by Govt. as per MW Act. You or your contractor should decide the piece rate for contract employee such a way that if an employee work for 8 hours he should earn wage not less than MW rate. Thus, the piece rate shall be protected as per MW Act.
Contribution towards PF & ESI shall be worked out on the total earnings on the base of piece rates decided as above.
The rate to contractor shall be decided after considering his service charges and other factors. PF & ESI will not be on his bill amount but on wages paid.
From India, Mumbai
Acknowledge(0)Amend(0)
Your post is one year old which came to my reading today itself. With due respect to Madhu ji, I though of replying you as under:
Your contract employees should get wages for 8 hours of work not below the rate as prescribed by Govt. as per MW Act. You or your contractor should decide the piece rate for contract employee such a way that if an employee work for 8 hours he should earn wage not less than MW rate. Thus, the piece rate shall be protected as per MW Act.
Contribution towards PF & ESI shall be worked out on the total earnings on the base of piece rates decided as above.
The rate to contractor shall be decided after considering his service charges and other factors. PF & ESI will not be on his bill amount but on wages paid.
From India, Mumbai
Acknowledge(0)Amend(0)
My salary was 10k in 2010. I worked with that salary until May 2012. My ex-employer cut an amount of nearly 2000 Rs in the form of PF. Now, the PF balance shows *(which comes from the pfindia site.) EE is 8166, ER 2499/- (accounts updated up to 2012-March). What is this nonsense? They cut my salary by nearly 60 thousand rupees. Now tell me, how much amount am I going to get?
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.