PF & ESI deduction on contractual employee - minimum wages

sarita_thakur12345 Started The Discussion:

hi can anyone tell me " pf and esi is applicable for contractual employees whose salary is consolidated 7000rs per month please clarify this thank you sarita

Neer300182 -  Member Since: Aug 2009
Originally Posted by sarita_thakur12345 View Post

can anyone tell me " pf and esi is applicable for contractual employees whose salary is consolidated 7000rs per month

please clarify this

thank you


Dear Sarita,

Greetings for the day!!!

Yes, ESI & PF shall be compulsorily deducted if no of employees is upto or more than 20.

ESI deduction Limit : Gross Salary upto 10000
PF can be deduct on basic salary

nitinp26 -  Member Since: Dec 2006
if contractual employees are not on rolls, they are considered as consultants. In their case only a TDS of 10.3% on gross is deducted. No PF and no ESIC. thanks.. Nitin.

dighemeenal -  Member Since: Dec 2008
Dear Sarita,
TDS is Tax Deduction at Source.
It is the responsibility of each employer to deduct the Income tax as per Act and rules, and submit it to IT dept.

For Contractual employees the TDS is flat 10.3%.

Best regards,

dighemeenal -  Member Since: Dec 2008
What kind of industry are you in? there could be different implications if you are in a factory or in construction.

moovendrapandi -  Member Since: Mar 2009
The Contract Employees when recruited by company and taking them in to their pay roll after that contract employees will be the onroll employee there is no any act is there to make a contract employee to an onroll employee.

if you have contract employees in your factory then you may not pay the ESI and EPF for them directly but you need to regulaize their company paying the same for them or not.If you have an employees lot then you must refer the CLRA contract labour regulation act and regulize all the rules as per the act.

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File Type: pdf contract labour act.pdf (290.0 KB, 2249 views)
sarita_thakur12345 -  Member Since: Apr 2009
i was not able to clarify this thing what is diff between on roll and off roll or contractual if company pay all facilities like PF,ESI than it is on roll position wht

moovendrapandi -  Member Since: Mar 2009
TDS is nothing but the deductions taking part when you are providing the Salary for contract employees or service charge to the consultant or other service providers if you need TDS calculator you can download from net

moovendrapandi -  Member Since: Mar 2009
On roll is explaining that the employees coming under your company Payroll that means PF and ESI and other employee benifits are should be taken care by you.

Off Roll employee is meant that they were all taking care by other companies or contractors by getting salary or service charge and working for your company

moovendrapandi -  Member Since: Mar 2009
(TDS Rates AY 2009-10) at For TDS this Link may help you..............


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