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My query is about managing daily wagers' accounts as we are running a management institute and have deployed various workers in the fields of housekeeping, mess cooking, and gardening. We are approaching a labor contractor for the same.

Two Important Questions

1. What amount, apart from daily wages, are we liable to pay in terms of ESI and PF?
2. What obligations does the contractor have to follow for ESI and PF?

All laborers are currently receiving Rs. 171 per day, and we are paying them on a monthly basis.

From India, Tirunelveli
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Calculating ESIC and PF Obligations for Employees

There is no other amount that needs to be considered other than daily wages to calculate ESIC and PF obligations for an employee on a monthly basis.

Records to be Maintained by the Contractor

The contractor must maintain the following records to verify the same:
- Muster Roll (Attendance Register)
- Leave Register
- Overtime Register (if the workers are doing overtime)

If you have any further queries in this regard, you may call me at [Phone Number Removed For Privacy Reasons] or [Phone Number Removed For Privacy Reasons], or email me at [Email Removed For Privacy Reasons].

From India, Jaipur
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Friend if you have hired more than 10 staff then pf & esic is mandatory Secondly minimum wages as per maharashtra act today is Rs 7300.you can also check the same on the website for more details.
From India, Mumbai
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Dear Friend, Before engaging a labor contractor, please ensure that your organization is registered with the labor office as the "Principal Employer." After that, please issue Form V to the contractor so that he can apply for the "Labor License." There exist some variations between states in the requisite number of manpower deployments for making an application towards a labor license (10/20). However, it is better if you plan for the maximum headcount (tentative) and ask your contractor to apply for the said license. It causes no harm to either your organization or the contractor to obtain a license for excess numbers but to deploy fewer headcounts.

Now, refer to the latest notification by the labor office in the area of deployment to fix the minimum wages payable against the schedule of employment to be performed. Make sure it is revised whenever a notification of wage revision is issued by the labor office.

In case the manpower is deployed in an ESI-exempted area, make sure the WC is obtained for the workmen. Also, ensure that the contractor is registered for LWF and makes the contribution at the specified time.

CTC payable to the candidates shall be Gross Salary + Employer's Share of PF & ESIC (WC in exempted areas) + Bonus + Leave encashment as per the provisions of the Shop & Establishment Act.

Registers, Challans, and Returns to be Obtained

Following are the registers, challans, and returns to be obtained by you for the contractor:

- Workmen Register
- Employment Card
- Muster Roll
- Register of Fines
- Register of Deductions for Damage or Loss
- Overtime Register
- Register of Advance
- Register of Leave
- Wage Register
- Muster Roll-Register under Maternity Benefit Act
- Monthly Challans-PF, ESIC & Professional Tax
- Half-Yearly Return-ESIC
- Annual Information under ESIC – Form 1A
- Annual Return-PF
- Half-Yearly Return-LWF
- Annual Return-MBA
- Half-Yearly Return-CLRA, 1970
- Annual Return-Minimum Wages
- Return under Payment of Bonus

Last but not least, you can also consider the expertise of my organization "Pyramids Staffing Solutions Pvt Ltd" for the scope of service in Contract Labor.

Regards,

From India, Chandigarh
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