Dear Rajendra
Principal Employer, when employing contract labours (through contractors), is required to ensure that the contract labours deployed for his work are paid minimum wages, and statutory deductions are made and deposited with the respective authorities so that these contract labours get their due benefits under these two social security acts. Hence, identification of contract labour is all the more necessary for ensuring benefits to them. Principal employer is thus required to keep track of all the benefits arising, to those contract employees, out of the job entrusted to the contractors employing those contrac labours. So, in absence of any such details available to the statutory bodies for identification of labour element, they take a thumb rule of 25% on the invoice value as labour charges which have been corroborated through different case laws. However, for labour intensive jobs, this rate may vary in higher proportion.
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Regards,
Satyen