Is E.S.I and P.F. applicable on Daily wage manpower who are paid in cash? - CiteHR
Amit Aishwary Choudhary
Managing People At Work.
Sheetalkalra
H.r.proffessional

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This is in context of a newly setup organisation. And also apart from maintaining the muster, are there any other Compliances?
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## As per EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
“employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of 16[an establishment] and who gets his wages directly or indirectly from the employer, and includes any person:
(i) employed by or through a contractor in or in connection with the work of the establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment.
“basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him.
## As per THE EMPLOYEES’ STATE INSURANCE ACT, 1948
“employee ” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and —
(i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory or establishment, whether such work is done by the employee in the factory or establishment or elsewhere ; or
(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment ; or
(iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service and includes any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory or establishment.
“ wages ” means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or layoff and] other additional remuneration, if any, paid at intervals not exceeding two months.
** For newly implemented areas, the contribution rate is 1% of wages of Employee and 3% payable by Employers for first 24 months(w.e.f. 06.10.2016) Employees in receipt of a daily average wage up-to Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Based on given definition, E.S.I And P.F. Applicable On Daily Wages Worker.
Regards,
Amit
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