Dear Sir,
Does the employer( Contract Labourer) is liable to pay esi on supervision charges.
Supposing an employer receives RS. 7000/- in that
1) 3200 will be employee salary
2) 384 wil be for PF contribution
3) 152 will be esi contribution
Remaining 3264 is considered as supervision charges.
Here do the employer is liable to pay Esi contribution for supervision charges.
At the time of Esi inspection what answer can be given by employer?

From India, Bangalore
vvyas83 HR Manager
No. Its a profit and not the salary. During ESI Audit in our manufacturing permises ESI inspector did not include that amount and deducted from Total amount as profit. He asssumed 30-40 % profit to normal in every billing amount.
Vijay Vyas
Noble Group

From India, Jaipur
Dear Kiran,
Positively it is profit of concern contractor or immediate employer and no esi contribution is payable on it subject to an opinion of that ESI Inspector during inspection bcoz normal practice is that there should be logical margin of profit and salary amount shall be around 65 to 70% of the total billing of the contractor. then it shall be allowed.
Hope u got it,

From India, Kolhapur
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