How is ESI and PF calculated for a One time job contract where the wages are inclusive of the total amount paid for the Job carried out by a number of contract workmen? Can any percentage of the total amount billed be considered as the amount towards wages ?.
From India, Nuvem
2From India, Nuvem
For civil & construction work there is DSR (Delhi Schedule of Rates) which can be used as reference and it is acceptable to all. For other types of works, your estimation of the cost of the work would give you the break up of the estimated cost. Another way is to use the actual payment of wages receipt.
From India, Mumbai
From India, Mumbai
First of all any bill/invoice must be bifurcated as material cost, labor cost and others, otherwise there will be complications. For Construction work there is Apex court verdict to consider 25 to 30% as labor cost of total cost.
For other nature of jobs it will depend on nature of job vs labor engagement. Actual payment of wages receipt will also be helpful. Better try to collect from the party the actual labor payment as document.
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
For other nature of jobs it will depend on nature of job vs labor engagement. Actual payment of wages receipt will also be helpful. Better try to collect from the party the actual labor payment as document.
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
In such cases it is always good if you have separate cost components. The ESI Corporation has issued a notification (attached) some time in 2002 that in the cases of principal employer unable to bifurcate the costs of the contractor, 60% of the total bill amounts shall be construed as labour cost and on the basis of that 60%, ESI shall be deducted. This is available only one time and for the subsequent contracts, the principal employer should ensure cost bifurcation without fail.
I don't know if any such notification is available from the EPFO
From India, Kannur
I don't know if any such notification is available from the EPFO
From India, Kannur
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