Industrial Relations And Labour Laws
Dy.manager - Hr & Admin
Korgaonkar K A
+1 Other

Dear All,
How to Calculate PF & ESI EE and ER contribution on Piece rate work don by CL?
On Total Piece rate Bill Amount?
(Example : Total an amount of Rs.245000/- total work don under Piece rate by a contractor)
number of contract labour worked / no of man days (i.e 1000mandays @ 215 Unskilled wage) to complete the Rs.245000/-.
here we are following on total work amount Rs.250000/-
if i am wrong pls correct me / advice me.
The agreement between com. and contractor in on Piece rate and the rates for each job is fixed.
K.Sripad Kumar
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Since the total sum payable to a contractor will include his service charges, you have to split the wages part (whether piece rated or time rated) and contribution is to be worked out on that wages part alone. For that you have to collect a statement of actual wages paid to his workers. You can work out the employer's contribution based on that. Since the employees' share is payable by the employees it will help you to advise the contractor the amount deductible from the employees.
Dear K.Sripad Kumar ji,
Your post is one year old which came to my reading today itself. With due respect to Madhu ji, I though of replying you as under:
Your contract employees should get wages for 8 hours of work not below the rate as prescribed by Govt. as per MW Act. You or your contractor should decide the piece rate for contract employee such a way that if an employee work for 8 hours he should earn wage not less than MW rate. Thus, the piece rate shall be protected as per MW Act.
Contribution towards PF & ESI shall be worked out on the total earnings on the base of piece rates decided as above. 
The rate to contractor shall be decided after considering his service charges and other factors. PF & ESI will not be on his bill amount but on wages paid.
my salary was 10k in 2010 , i worked with that salary till May 2012..My ex employer cut amount of nearly 2000Rs in the form of PF..Now the pf balance shows *(which comes from the pfindia site.)EE is 8166, ER 2499/- (accounts updated upto 2012-march)..What is this nonscence??/They cut my salary nearly 60thousand rupees ) now tell me how much amount i am going to get??
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