hi revathi... so u mean there will be no problem in reducing the contribution as even employer’s contribution will also get reduced proprtionaltely. rolly
From India, New Delhi
8From India, New Delhi
Hi,
If the principal employer is covered under ESI, then the contract employees will also to be covered even if the contractor has less than 20 employees. The principal employer has to deduct and remit in their (principal employer)code for contractor employee too.
Regards
G Sakthivel
If the principal employer is covered under ESI, then the contract employees will also to be covered even if the contractor has less than 20 employees. The principal employer has to deduct and remit in their (principal employer)code for contractor employee too.
Regards
G Sakthivel
I do not find any reason when the statutory limit is fixed at Rs.6500/- for PF applicability, why can't we restrict ourselves for recovery and remittance of PF on Rs.6500/-, though earlier we have recovered and remitted on higher amount than Rs.6500/-.
Hi Shilpa i have a one question that if any person work for one day and met an accedent what should be done for that?
Plz explain me on
or
IF Possible call me on 9923396082.
Prashant Shinde.
From India, Pune
Plz explain me on
IF Possible call me on 9923396082.
Prashant Shinde.
From India, Pune
Shilpa Verma, is very right and clear, we are the Principal employers, if contractors has not deposite ESI, then the principal employer is liable to that.
Even any employee entry in factory permises all the responsible on going to the Factory Manager or Ocupier.
If some construction work also on site, supose amounting of the project one crore, then the here as 75% for material cost and other 25% for the labour cost and ESI will be deduct @ 6.5 % on 25%.
Thanks & regards
Manoj
From India, Delhi
Even any employee entry in factory permises all the responsible on going to the Factory Manager or Ocupier.
If some construction work also on site, supose amounting of the project one crore, then the here as 75% for material cost and other 25% for the labour cost and ESI will be deduct @ 6.5 % on 25%.
Thanks & regards
Manoj
From India, Delhi
Hi Friends,
I think some of our friends are right that the principal employer must cover the ESI for contract employee also and can recover that from the contractor in turn.
Will when it comes to PF i think it is not possible to reduce the contribution and you might be required to pay the arrears later on. i would like to know am i right in this case. Even i would like to know what is the maximum PF that can be paid by company if the basic is more than Rs 6500.
Waiting for your replies...................
Regards
Amith R.
From India, Bangalore
I think some of our friends are right that the principal employer must cover the ESI for contract employee also and can recover that from the contractor in turn.
Will when it comes to PF i think it is not possible to reduce the contribution and you might be required to pay the arrears later on. i would like to know am i right in this case. Even i would like to know what is the maximum PF that can be paid by company if the basic is more than Rs 6500.
Waiting for your replies...................
Regards
Amith R.
From India, Bangalore
Hello Rolly
The ESI resposibility of individuals employed through not just contractors but also sub-contractors, lies with the primary employer. I learnt this recently from our legal advisors. He also gave me an example that I wish to share here.
Primary employer level - ABC Ltd. (Sells home appliances and produces its spare parts.)
Contractor Level - XYZ services (assembles spare parts manufactured by ABC at ABC and also at XYZ services and sends it back.)
Sub contract level - House keeping (XYZ hires labors on contract for security and house keeping)
Now ABC is responsible for ESI payment for:
1) All ABC employees whose wages are below 10k p.m.
2) For XYZ's Skilled laborers doing assembling work for ABC (wages < 10k p.m.)
3) For those who are working at ABC, but on contract with XYZ - office boys, security gaurds, admin officers etc.:icon4:
It can be claimed back from XYZ, but ABC would be held responsible if things go wrong.
As for PF, for employees whose basics are more than 6.5k p.m, a min of Rs.780 contribution needs to be made towrds EPF by employee and by company.
A company may choose to freeze employer contribution @ Rs.780/- p.m. per employee; and the employee to may choose to keep it the same if basic is Rs.6.5k and above.
However, if the employee wishes to increase his/her contribution towards EPF, he/she may do so after expressing so in writing and post the respective EPF officers approval. However, it does not imply that the employee too would be liable to contribute more than Rs.780/-.
Seniors and Legal practitioners, please correct me if I am wrong.
Thank you
From India, Pune
The ESI resposibility of individuals employed through not just contractors but also sub-contractors, lies with the primary employer. I learnt this recently from our legal advisors. He also gave me an example that I wish to share here.
Primary employer level - ABC Ltd. (Sells home appliances and produces its spare parts.)
Contractor Level - XYZ services (assembles spare parts manufactured by ABC at ABC and also at XYZ services and sends it back.)
Sub contract level - House keeping (XYZ hires labors on contract for security and house keeping)
Now ABC is responsible for ESI payment for:
1) All ABC employees whose wages are below 10k p.m.
2) For XYZ's Skilled laborers doing assembling work for ABC (wages < 10k p.m.)
3) For those who are working at ABC, but on contract with XYZ - office boys, security gaurds, admin officers etc.:icon4:
It can be claimed back from XYZ, but ABC would be held responsible if things go wrong.
As for PF, for employees whose basics are more than 6.5k p.m, a min of Rs.780 contribution needs to be made towrds EPF by employee and by company.
A company may choose to freeze employer contribution @ Rs.780/- p.m. per employee; and the employee to may choose to keep it the same if basic is Rs.6.5k and above.
However, if the employee wishes to increase his/her contribution towards EPF, he/she may do so after expressing so in writing and post the respective EPF officers approval. However, it does not imply that the employee too would be liable to contribute more than Rs.780/-.
Seniors and Legal practitioners, please correct me if I am wrong.
Thank you
From India, Pune
Hi Prashant
If an employee met with an accident on the date of his joining, he is entitled for compensation under the Workmen Compensation Act if he is not covered under ESI. For violation of any statute by the Contractor, the principal employer will be squarely liable.
I shall send the latest judgment on ESI contributations payable on the outsourced job to your e mail id.
Thanks & Regards
Kalyan R
Manager - Personnel
WABCO-TVS (INDIA) Ltd
Mahindra World City
Chengalpattu - 603 002.
Mobile: 9840942232
From India, Madras
If an employee met with an accident on the date of his joining, he is entitled for compensation under the Workmen Compensation Act if he is not covered under ESI. For violation of any statute by the Contractor, the principal employer will be squarely liable.
I shall send the latest judgment on ESI contributations payable on the outsourced job to your e mail id.
Thanks & Regards
Kalyan R
Manager - Personnel
WABCO-TVS (INDIA) Ltd
Mahindra World City
Chengalpattu - 603 002.
Mobile: 9840942232
From India, Madras
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