Dear,

Our labor contractor is supplying workers as per our requirements, but he is unable to comply with PF and ESIC regulations as he has not obtained the necessary code. In this case, can we make payments under our sub-code for ESIC and PF? Is there any provision in the law? Please guide.

Vijay Patil

From India, Mumbai
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Another question is whether we are paying minimum wages as per the new circular to the contract workers. When calculating their PF and ESIC contributions, we have structured it as 40% in Basic and 60% in allowance, with PF calculated on 40% of the Basic Amount. Please guide if this approach is correct or incorrect.
From India, Mumbai
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Glidor
725

sub code ?? principal employer has to pay statuary contribution on contract workers, if the contractor fails to do so, reg splitting of wages, we shall advise not to split the minimum wages,

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Before engaging a contractor, PE has to ensure that they have obtained registration under PF & ESIC. It is not correct to make deductions and remit them to your account, as it may lead to a claim of permanency under PE, which is yourself.
From India, Mumbai
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