ESI and PF Deductions for Contractor Employees: Who's Responsible and What's Required?

Respected Sir/Madam, Please tell me how many contractor employees need to be given to the employer for ESI and PF share if the employer has 8 contractor employees. Is the employer responsible for ESI or PF deduction? Compulsory, yes or no?

Thank you,

Harnek Singh

There is no such limit for contractor employees for coverage under P.F and ESI.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

As per ESI & PF, the minimum number of employees is 10/20. Employees may be on the company's payroll or hired as contractors. Therefore, if a company is covered under the act and engages a single contract laborer, that contract laborer is also covered under the act.

Regards,
Amit Tawar

If you have only contract labor in your establishment, the minimum coverage, as Mr. Amit Talwar said, shall be 10/20 depending on whether your establishment is a factory or shop and whether it is located in Delhi or elsewhere.

Regards,
B. Saikumar
HR & Labor Law Advisor