Hello Rolly
The ESI resposibility of individuals employed through not just contractors but also sub-contractors, lies with the primary employer. I learnt this recently from our legal advisors. He also gave me an example that I wish to share here.
Primary employer level - ABC Ltd. (Sells home appliances and produces its spare parts.)
Contractor Level - XYZ services (assembles spare parts manufactured by ABC at ABC and also at XYZ services and sends it back.)
Sub contract level - House keeping (XYZ hires labors on contract for security and house keeping)
Now ABC is responsible for ESI payment for:
1) All ABC employees whose wages are below 10k p.m.
2) For XYZ's Skilled laborers doing assembling work for ABC (wages < 10k p.m.)
3) For those who are working at ABC, but on contract with XYZ - office boys, security gaurds, admin officers etc.:icon4:
It can be claimed back from XYZ, but ABC would be held responsible if things go wrong.
As for PF, for employees whose basics are more than 6.5k p.m, a min of Rs.780 contribution needs to be made towrds EPF by employee and by company.
A company may choose to freeze employer contribution @ Rs.780/- p.m. per employee; and the employee to may choose to keep it the same if basic is Rs.6.5k and above.
However, if the employee wishes to increase his/her contribution towards EPF, he/she may do so after expressing so in writing and post the respective EPF officers approval. However, it does not imply that the employee too would be liable to contribute more than Rs.780/-.
Seniors and Legal practitioners, please correct me if I am wrong.
Thank you