Hr, Legal Compliance & Er-ir
Hr-manager, Trainer, Writer
Human Resource And Labour Laws
Ram Mohan Prajapati
Senior Member Hr
Production, Training & Development
Hr Consultants At Gvk Emri - 108
Labour Laws And Financial Matters
Head Human Resources
+3 Others

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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
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

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.
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,

What kind of industry are you in? there could be different implications if you are in a factory or in construction.
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.

Attached Files
File Type: pdf contract labour act.pdf (290.0 KB, 3816 views)

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
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
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

TDS Rates AY 2009-10
For TDS this Link may help you..............

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