Dear Seniors,
Warm Greetings & High Regards to you!
We belong to Pharma Research Industry. We are performing research in Healthy Human beings. We have inhouse doctors, nurses, custodians, Lab technicians properly employed as per the shops and establishment act. We have a CTC style of preparing Payprocess. Also we are an MNC.
My query is related to the employees whom we engage for the need basis. For example, when we do research, we may require external nurses, doctors, custodians to support our activities in addition to our regular staff. They are paid on hours of time they work. For example, there are nurses who work for 2 hours in a day and there are nurses who work for 20 - 30 hours in a week. We call him as and when there is requirements. They come, work and get paid on the no. of hours they work. For example we pay Rs.92/- per hour of their work.
Do we have to call them as Contract employees or part time employees or just a need based workers. In such case, should we have to deduct PF & ESI for them? However, we are deducting TDS and paying them.
If PF & ESI should be paid, how to arrive the structure of their basis. Because PF has to be paid on the basic (12%).
Few of my officials say they are working for time basis, hence they are not contract workers, hence no PF is applicable.
Few of my other officials say they are working for the company and contributing on our services, hence PF has to be deducted.
Please clarify my queries on urgent basis.
I would be grateful for your answers and suggestions.
With Best Regards
Devi Balaji
From India, Madras
6Warm Greetings & High Regards to you!
We belong to Pharma Research Industry. We are performing research in Healthy Human beings. We have inhouse doctors, nurses, custodians, Lab technicians properly employed as per the shops and establishment act. We have a CTC style of preparing Payprocess. Also we are an MNC.
My query is related to the employees whom we engage for the need basis. For example, when we do research, we may require external nurses, doctors, custodians to support our activities in addition to our regular staff. They are paid on hours of time they work. For example, there are nurses who work for 2 hours in a day and there are nurses who work for 20 - 30 hours in a week. We call him as and when there is requirements. They come, work and get paid on the no. of hours they work. For example we pay Rs.92/- per hour of their work.
Do we have to call them as Contract employees or part time employees or just a need based workers. In such case, should we have to deduct PF & ESI for them? However, we are deducting TDS and paying them.
If PF & ESI should be paid, how to arrive the structure of their basis. Because PF has to be paid on the basic (12%).
Few of my officials say they are working for time basis, hence they are not contract workers, hence no PF is applicable.
Few of my other officials say they are working for the company and contributing on our services, hence PF has to be deducted.
Please clarify my queries on urgent basis.
I would be grateful for your answers and suggestions.
With Best Regards
Devi Balaji
From India, Madras
They are to be subjected to ESI and PF provided their notional salaries do not exceed the ceiling set under each Act, ie, Rs 15000 per month as of now. The nomenclature of payment is not an issue here and what is important is the remuneration for their work. Obviously, if per hour rate multiplied by the notional working hours per month exceed the limit, you can exclude them. Continuing your example, if the rate per hour is Rs 92, then it would amount to Rs 736 per day and Rs 19136 per month. In such scenario, you can exclude them saying that their notional wages is more than Rs 15000.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
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PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls