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Hi All, I have started a Contract labor service and I want to know whether we have to pay the exact amount for PF and ESI which is paid from the company as their salary structure to employee PF and ESI account without changing Basic salary, and anyone please suggest me if the salary structure can be changed by contract owner!
From India, Chennai
Agile Solutionist
HR Professional
Retd Hr Professional


As a Contractor, you are the employer of all your employees and Employer - Employee relationship is between your organization and employees and not with the client (Principal Employer). As Principal Employer is accountable if you do not stay compliant with the CLRA and many legislations, may be the Principal Employer has drafted the salary structure on behalf of you. It is not recommended to tamper with the calculations yourself. If you have some confusion over workings, or suggestions, better to check with the Principal Employer as well.

Also recommending to refer compliance calendar for Tamil Nadu.

From India, Bangalore
HR professional

Ms. Pritvi kumari, Yes, you to pay PF&ESIC contributions without any changes Regards
From India, Bengaluru
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