Anonymous
I am service / manpower provider company in Maharashtra. I have entered government tender seeking for providing security. The rate of per guard was to be calculated as per Minimum wages act. I levied all the allowances as per the latest minimum wages act of Dec 2022 which included pf, esic, pt, hra, bonus, washing allowance etc. But in the financial bid the government organization rejected my bid stating, i have asked for the employees share of pf, esic and pt from them which they are not liable to pay.
My question is the government organization being the principal employer in this case and i being the contractor, the organization has the responsibility to pay the employees allowances as they are rendering services for them on contractual basis.


Please help me with this query as I have appealed the towards the higher authority regarding this issue.

From India, Pune
Madhu.T.K
4248

Showing the employer's contributions is a system followed in private organisations and not in government. For us, everything that we spend for the employees is costs to company and there is no benefits, in fact! What you have to do while submitting the tenders is to show the wages payable in gross and your service charges which shall include the contributions payable by you without bifurcating it as employer's contributions and service charges.

If you are going to higher authorities, you can go submit that these are employer's contributions to various statutory funds. Some times, it will benefit you.

From India, Kannur
nanu1953
337

I am bit confused that why are you asking for employees portion of PF, ESI, PT etc. from the PE. PE is responsible for compliance of minimum wages along with Employer portion of PF & ESI. Employees portion of PF , ESI and PT should be deducted from employee's wages not to be paid by the PE.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi
Madhu.T.K
4248

Apprehension of the government authority should be that when employer's share is a cost to the employer, why is it shown separately or is it deducted from the employee's salaries? The same question they use to ask when they see the appointment order of a private employee also because their pay package will not contain such costs met by the government.
From India, Kannur
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