Dear All,

Can someone help me with the following regarding service charges being paid to labor contractors:

Should the labor contractor who supplies manpower to the principal employer and pays the PF and ESI for his contract manpower deployed at the site of the principal employer claim service charges for gross wages + PF + ESI + bonus + gratuity + leave wage to ensure the liability of the principal employer is clear, or just the gross wages?

Requesting senior members on the site to kindly help me with this query.

Regards,
Akshay

From India, Panjim
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The Service Charges has to be paid for Gross Wages + PF + ESI + Bonus + Gratuity + Leave Wage to ensure clear the liability of the Principal employer and not on only the Gross Wages.
From India, New Delhi
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This is a matter that the contractor has to negotiate with the Principal Employer. There is no rule of law involved. Whether his service charge will be on gross wages or including various benefits is a matter of negotiation.
From India, Mumbai
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