sanjay.dulgaj Started The Discussion:
I am new to join this community forum. Iamb really enjoying being learnig a lot from you all.
Iamb seeking for the piece rate sheet.
My Company finalized the piece rate & gave the contract to the contract employees.
Now after the month the contract employees are biling for their piece work.
Question is how to calculate the esi & pf on their bill. Is it that the esi & pf to be deducted on whole piece work amount.
In RC number of days to be shown. In PF there is ceiling for 6500, their bill amount will also be different every month.
Can any body explain me the correct way of clearing their bill & maintaining the record of the piece rate employees. I will be glad by your help.
You least bother about Piece rate or time rate with regard to PF Deduction.
First you find otu Minimum wage for your industry and arrive & apply that figure for wage calculation.Based upon the Minimum wage you calculate PF Deduction.
I had already used this system of minimum wages & accordingly I had calculated the pf & ESI also.
But the problem is that the whole bill amount does not match with the minimum wage rate as for eg. if the person raised his bill for Rs. 4000 & as per the minimum wage calculation for max. 27 days his gross comes to 3500. we can calculate his pf on (basic+da) rate & esi on 3500. what about the diff of Rs.500. (4000-3500)
As per my knowledge the whole bill amout is the labour cost. & esi / pf should be deducted on the whole amount.
I've attached my piece rate sheet calculation for your reference. Please go through it guide me.
* Ex-Gratia in this sheet is nothing but the diff of bill amount & the gross wage. On which I have calculated esi also.
the bill amount is only their piece rate amount i.e (rate * No.of piece done)
MY problem is different with regard to piece rate pay system. My system is clear and simple. Employees are paid on monthly basis as per No. of Pieces processed x rate fixed for type of piece.
Following are my questions :
1. If actual wages of any employer are less than the Minimim Wages, I have to pay him minimum wages. Should I calculate PF/ESI also on Minimum wages paid or actual wages earned by employee.
2. In piece-rate system, wages keep on varying every month for all employees. Sometimes, it may happen that employee normally earning wage beyond Rs.10,000/- p.m on average, earn less than Rs.6500/- in particular month. So, I have to include him as PF Member for all time as per PF Act provisions. If he would resist to become a life-time PF Member, what is the solution in my hand ?
3. In piece-rate system, due to variable piece-rate calculations, wages/salary of employee frequently exceeds beyond or declines below the limit of Rs.15,000/-, he would either exit or remain a member of ESIC. This would occur repeatedly. In this case, it is extremely difficult to monitor his contribution and benefit periods and it may mostly happen that he is deprived off ESI benefit in spite of few contributions he paid.
Under the circumstances, I would invite all my learned and experienced friends to guide me adopting a logical method of piece-rate wage/salary system which at the same time ensures full compliance of PF/ESI/PT like limit regulated benefits.
With best regards,
This very old discussion came to my reading today itself. Similar old discussion came to my reading today itself to which I have responded as given in below link:
How to Calculate PF & ESI EE and ER contribution on Piece rate work don by CL?
We can now continue our discussion on the basis of above link.
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