Hi Friends,
We are an apparel manufacturing facility doing export business. We employee around 3000 people. For some specific operations we hire outside contractors who will bring in their machines to our factory and do the specific speciallised operations. If their number of workers working in our factory is less than 10, does we need to deduct ESI and PF for their workers as principal employer?
-Srinaren
From India, Bangalore
16We are an apparel manufacturing facility doing export business. We employee around 3000 people. For some specific operations we hire outside contractors who will bring in their machines to our factory and do the specific speciallised operations. If their number of workers working in our factory is less than 10, does we need to deduct ESI and PF for their workers as principal employer?
-Srinaren
From India, Bangalore
Dear Srinaren,
Yes, you have to deduct the ESIC & PF as you are the principal employer and are covered under These acts.
The contractor automatically gets covered iin the act.
If its a long term contract, you can ask the contractor to make deductions and maintain the books.
If its a short term contract then PF is not necessary but please make esic deductions from the payment upto 1.75 % and pay it through the regular challan.
From India, Pune
Yes, you have to deduct the ESIC & PF as you are the principal employer and are covered under These acts.
The contractor automatically gets covered iin the act.
If its a long term contract, you can ask the contractor to make deductions and maintain the books.
If its a short term contract then PF is not necessary but please make esic deductions from the payment upto 1.75 % and pay it through the regular challan.
From India, Pune
Hi Viraj,
Thanks for your inputs. But, we will pay the contractor a consolidated bill and he will disburse the wages to his workers. If we deduct 1.75% which is employees contribution, what about employer's contribution of 4.75%?
Also, one more clarification required regarding the contractor is giving us less than 10 workers and do we have to deduct the ESI?
Yes, this is for a short term contract and I would like to know is there any notification that PF not to be deducted for short term contracts?? If so I would like to see that notification.
-Srinaren
From India, Bangalore
Thanks for your inputs. But, we will pay the contractor a consolidated bill and he will disburse the wages to his workers. If we deduct 1.75% which is employees contribution, what about employer's contribution of 4.75%?
Also, one more clarification required regarding the contractor is giving us less than 10 workers and do we have to deduct the ESI?
Yes, this is for a short term contract and I would like to know is there any notification that PF not to be deducted for short term contracts?? If so I would like to see that notification.
-Srinaren
From India, Bangalore
Dear Srinaren,
If there is a contractor he needs to submit documents to your pertaining to ESIC & PF payments from his side.
If he doesnt do say and doesnt pay then you as a principal employer are responsible for it.
Even during inspection the labour ispectors will refer to bills and ask you wether the ESIC & Pf has been paid for the labour owrk done.
Please check the bill if the contractor is charging you esic in the bill, if yes then it is his responsibility to pay and your responsibility to ensure he pays.
If not you deduct and pay 4.75 % from your pocket as you are the principal employer. Normally contractors charge the principal employers this amount in the bill
From India, Pune
If there is a contractor he needs to submit documents to your pertaining to ESIC & PF payments from his side.
If he doesnt do say and doesnt pay then you as a principal employer are responsible for it.
Even during inspection the labour ispectors will refer to bills and ask you wether the ESIC & Pf has been paid for the labour owrk done.
Please check the bill if the contractor is charging you esic in the bill, if yes then it is his responsibility to pay and your responsibility to ensure he pays.
If not you deduct and pay 4.75 % from your pocket as you are the principal employer. Normally contractors charge the principal employers this amount in the bill
From India, Pune
Hi,
We are a manufacturing company. We want to use approx 40 labor's through contractor. Than what a responsibility about P.F. & ESI for those labors as we are a principle employer.
We have to deduct the P.F. & ESI from the contractor payment or not ? Who will give the employer contribution? Company or contractor ? Who will mentain the P.F & ESI contribution deposit work contractor or company ?
From India, Guwahati
We are a manufacturing company. We want to use approx 40 labor's through contractor. Than what a responsibility about P.F. & ESI for those labors as we are a principle employer.
We have to deduct the P.F. & ESI from the contractor payment or not ? Who will give the employer contribution? Company or contractor ? Who will mentain the P.F & ESI contribution deposit work contractor or company ?
From India, Guwahati
Yes Vidya, you will be reponsible for the contribution of PF & ESI being a principle employer. if the contractors have their own separate code of both ESI & PF then, they need to deposit the same and do complaince in their own code, however they charge the amount from you in monthly bil( its a matter of agreement B/w you and contractorss) l. In case they do not have own code then Principle employer need to deposit the same in its own code.
they will be employee of the contractors but are working for you and in your establishment. the contractor need to maintained all record & registers with him.
they will be employee of the contractors but are working for you and in your establishment. the contractor need to maintained all record & registers with him.
Hi All,
I would like to inform you that as a Principal employer, if any contractor is not providing ESI and Pf facility to their employees, then Principal employer will be liable the same.
If any contractor is providing RF and ESI benefits to employees then we need to collect the monthly challan with detail for PF and ESIC and Copy of EPF Annual Return alongwith 3A and 6A for further clarification.....In case of ESIC we need to collect the copy of challan and Half yearly return for the prescribed period to reduce the responsibility and fulfill the statutory requirements..
If any contractor is not paying ESIC contribution then as a principal employer we need to deduct 6.5% from contractor's bill i.e. 4.75% for employer's share and 1.75% employee's share. We can follow the same process in case of PF also..
Thanks & Regards
Sunil Sharma
Email:
V3S Group
From India, New Delhi
I would like to inform you that as a Principal employer, if any contractor is not providing ESI and Pf facility to their employees, then Principal employer will be liable the same.
If any contractor is providing RF and ESI benefits to employees then we need to collect the monthly challan with detail for PF and ESIC and Copy of EPF Annual Return alongwith 3A and 6A for further clarification.....In case of ESIC we need to collect the copy of challan and Half yearly return for the prescribed period to reduce the responsibility and fulfill the statutory requirements..
If any contractor is not paying ESIC contribution then as a principal employer we need to deduct 6.5% from contractor's bill i.e. 4.75% for employer's share and 1.75% employee's share. We can follow the same process in case of PF also..
Thanks & Regards
Sunil Sharma
Email:
V3S Group
From India, New Delhi
I want to Know that PF and Esi is applicable to any Management Trainee to whome only Stipend is paid Rajesh Kumar Kolkata
From India, Mumbai
From India, Mumbai
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