Anonymous
Dear Sirs,
With reference to the above, our factory has been registered under EPF & ESI act.
Now we are doing some civil construction work at our premises. We just need to know that we are responsible to pay EPF & ESI on the bills charged by contractor. Our contractors are not registered under EPF & ESI act.
The bill value is about 2 to 3 lac.

From India, Patna
Prashant B Ingawale
467

Generally 30 % of total bill is deemed as labor Charges based on that calculation figure you need to Pay PF & ESI Accordingly on your PF & ESI Code.
From India, Pune
Harsh Kumar Mehta
923

1. Sir, it will be more appropriate if you may ask your civil work contractors to maintain proper records of employment and payment of wages of said construction workers and make payment of contributions under ESI Act, 1948 correctly and in time. ESI Contribution is required to be paid on the basis of records of employment and wages and not on the basis of amount of bills. In case contribution is not paid by the contractors or principal employer, ESIC can and generally claim contributions on total amounts of such bills of construction contractors.
2. I also understand that there is no such formula of treating 30% as wages out of total amounts of bills. Even if there are some instructions issued by the said department in the past, the same are hardly followed by the said department because of some discretion, clarifications and conditions laid down under such instructions.

From India, Noida
KK!HR
1530

You can refer to the Standard Schedule of Rates for construction followed by CPWD/ Delhi which is considered as standard reference, as the basis.
From India, Mumbai
lawbadri
7

Sir, if the employer of the contract workers inside your factory do not have a separate PF and ESI Code, then your organisation is deemed to be establishment for the purposes of the said legislations. In case your Contractor does not have separate PF/ESI codes, and in case these Acts are applicable to you, it is obligatory on your part to discharge these statutory obligations.
From India, Vellore
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