Understanding PF & ESI Remittance for Daily Wages and Contract Labor: Guidelines and Implications

Dear Seniors,

Our company is based in Chennai, and the site location is in Bangalore. Labourers are engaged through a manpower supply. Kindly clarify whether the labourers engaged are to be covered under PF and ESI as they are on daily or weekly wages. Secondly, if PF & ESI are to be covered, let us know whether we need to apply for a separate PF & ESI code for the company in Bangalore and if PF & ESI remittances have to be done in Bangalore.

Hi Premlatha,

In terms of Sec. 2(f) of the P.F Act, 1952, and Sec. 2(9) of the ESI Act, 1948, contract workers are covered if their wages are Rs. 6,500 per month and below and Rs. 15,000 per month and below under the respective Acts, provided they are employed for doing the work of your establishment or for doing any work connected with that of your establishment, and if their presence is not merely casual on your premises.

B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai 022-28324234

Dear all,

Contract labor engaged as and when work is available in the establishment, can these employees be covered under the PF and ESI Act?

Regards