Can We Pay More Than Minimum Wages To The Contract Labor?

You can give the sincere and hard working workmen with incentives / productivity bonus for every month for which you must maintain the productivity of each workmen. Even you can pay as per the quality products delivered by the workmen, for which no one can ask any question. But take prior approval from your management before effecting the payment. This payment you need not to give through the contractor or his bill. You can directly make the payment (Cash Reward) to the workmen in monthly progress /quality / safety meeting in front of all the employees.

Dear Ganesh, I have know setup where the contract workers because of overtime and long working hours have got very close or sometime got more than what a white collar junior level staff gets. hence this was highlighted.. trust you would factor that.
Like S Bhaskar says,... one more option to look at is paying early salary to good performers.. say the top 10% of the performers will get salary 2-3 days in advance. i.e if salary chq gets paid to contractor on 7th... For the top 10% staff issue cheq to contractor on 1st... and for remaining 90% on the usual date. There is no extra payment from your end.. just early payment... there is not revenue loss to you.. yet for the staff one week early salary means a lot. Also, you are not penalizing the 90% for not being top performers.
Something else that can be done is .. for someone who is 100% attendance.. give that person one day extra salary... generally contract staff have habit of bunking.
Best Wishes

Dear Ganesh
May find it useful to go through following points:
# It is not YOU (management) it is the CONTRACTOR who pays the wages to contract labours
# As said above, you can definitely pay higher, in fact it is the practice since there are several critical skills and high skills which demads higher than the minimum- it is market driven. The contractor can pay/reward the performing labours.
# There is no upper limit - it calls for review of salary of the employee at bottom of your organization and any possible implications on regular workmen/their unions.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65

Yes you pay as you desire but if you want that no unrest among the workers who are still working , you may please give promotion or grade to whom you want to increase their minimum wage ie Grade I, Grade Ii ,Technician

Contractor collected pf amount from the workers, but it is not deposited. He got PF registration, but no payments. Can we register a embezzlement case in Police Station. Pl. clarify.

Dear sambasivakamasani,
This is the common problem.you can lodge the case against contractor but procedure will go long..Also consider the other circumstances like contractor status, management's view etc..
Better way.. take care in future..
Regards,
Ganesh.

Dear Sambasiva,
As per Contract Labour Act, if the contractor is not making payments properly, then principal employer is liable to pay and deduct the amount thus paid in contractor's bills. It is the responsibility of the principal employer to take care of such issues. Whatever amount is paid to contractor towards wages includes statutory components like PF, ESI, etc. You may take up the issue with local Labour Department authorities for resolving the issue, with all records substantiating your argument. In cases of contravention, the principal employer will be fined and jailed.
With regards,
Madhusudan