Dear Sir, My company provides cleaning services to government organizations on a contract basis. We have to provide minimum labour on a daily basis. If we fail to do so, they penalize us. So sometimes, we have to arrange temporary labour from local places. For which we pay minimum wages to these temporary labourers. Is PF deduction applicable to their wages?
From India, Pune
From India, Pune
Mr Harish,
I am giving u point wise reply / Suggestion as under :
1) My company provided cleaning services to government organizations on contract basis.
Ans : Since You have got registration for your Firm under Shops & Establishment act and also got registration under Contract Labour Act for supplying Manpower to Goverment Organization. Under the provisions of Both act , You should follow Payment of Minimum Wages Act applicable to ur area
and ESI Act if manpower supplied and engaged = > 10 No, if u are working in the area of ESI covering Zone.
If You are supplying these Manpower with such quantity or more and total employment is = > 20 No including your Office Staff / Supervisors , You Should get registered with EPFO and deposit
the PF Contribution as Employer and deduct on same ratio ( @12%) on Basic Salary which u are paying to your workers.
2) we have to arrange temporary labour from local places :-
There are no any matter whether u are engaging temporary workers , they all will be attracted by Mini Wages/ ESI / PF/ Bonus ( if worked > 30 days) in a year.
From India
66I am giving u point wise reply / Suggestion as under :
1) My company provided cleaning services to government organizations on contract basis.
Ans : Since You have got registration for your Firm under Shops & Establishment act and also got registration under Contract Labour Act for supplying Manpower to Goverment Organization. Under the provisions of Both act , You should follow Payment of Minimum Wages Act applicable to ur area
and ESI Act if manpower supplied and engaged = > 10 No, if u are working in the area of ESI covering Zone.
If You are supplying these Manpower with such quantity or more and total employment is = > 20 No including your Office Staff / Supervisors , You Should get registered with EPFO and deposit
the PF Contribution as Employer and deduct on same ratio ( @12%) on Basic Salary which u are paying to your workers.
2) we have to arrange temporary labour from local places :-
There are no any matter whether u are engaging temporary workers , they all will be attracted by Mini Wages/ ESI / PF/ Bonus ( if worked > 30 days) in a year.
From India
Hi All,
I have a query regarding PF.
I work for a construction industry. Here availability of labour is a difficult task. We pay them in cash as they are:
1. Casual & Migratory Workers
2. Most of them don't have Bank Accounts or any photo ID for opening bank accounts
3. They work under Labour Contractor.
PF authorities are issuing notice and forcing us to enrol these casual workers under EPF or else servicing us notices. According to them, even if a worker worked for a day, PF needs to be deducted.
While making it compulsion, workers are threatening to leave the work. We are in great trouble. After convincing, we could get the ids of couple of workers who were having Aadhar and Address Proof. And obviously, we are paying that above the committed amount (from our pockets)
Recently, I heard that if a person has worked for more than 60 days, then only they should be made member of PF. I am not sure how far it is true.
Kindly Advise.
Satya
From India, Pune
I have a query regarding PF.
I work for a construction industry. Here availability of labour is a difficult task. We pay them in cash as they are:
1. Casual & Migratory Workers
2. Most of them don't have Bank Accounts or any photo ID for opening bank accounts
3. They work under Labour Contractor.
PF authorities are issuing notice and forcing us to enrol these casual workers under EPF or else servicing us notices. According to them, even if a worker worked for a day, PF needs to be deducted.
While making it compulsion, workers are threatening to leave the work. We are in great trouble. After convincing, we could get the ids of couple of workers who were having Aadhar and Address Proof. And obviously, we are paying that above the committed amount (from our pockets)
Recently, I heard that if a person has worked for more than 60 days, then only they should be made member of PF. I am not sure how far it is true.
Kindly Advise.
Satya
From India, Pune
For Sub-Contractors ( Item rate contractors with manpower ) - Thumb rule ( as per PF Authority ) - At least 30% of Work Done Value will be the Labour Wages Cost subject to the nature of Job.
For Labour Contractors / manpower Supplier - At least 90% will be Labour Cost on Total Work Done Value
From India, Kolkata
For Labour Contractors / manpower Supplier - At least 90% will be Labour Cost on Total Work Done Value
From India, Kolkata
Hi All,
I have a query regarding PF Thumb rule.
I work for a construction industry................
1. For Sub-Contractors ( Item rate contractors with manpower ) - Thumb rule ( as per PF Authority ) - At least 30% of Work Done Value will be the Labour Wages Cost subject to the nature of Job.
2. For Labour Contractors / manpower Supplier - At least 90% will be Labour Cost on Total Work Done Value . I am not sure how far it is true.
Kindly Advise.
Somen Mandal
From India, Kolkata
I have a query regarding PF Thumb rule.
I work for a construction industry................
1. For Sub-Contractors ( Item rate contractors with manpower ) - Thumb rule ( as per PF Authority ) - At least 30% of Work Done Value will be the Labour Wages Cost subject to the nature of Job.
2. For Labour Contractors / manpower Supplier - At least 90% will be Labour Cost on Total Work Done Value . I am not sure how far it is true.
Kindly Advise.
Somen Mandal
From India, Kolkata
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PF not applicable on CTC 18.3.2014.pdf