Curious About Part-Time Employee Benefits? Let's Discuss PF, ESI, Insurance, and Bonuses

Hi,

Can anyone please let me know the answers to the following queries:

- How is PF and ESI handled for part-time employees? Will there be any difference in the % of amount deduction for part-time & full-time employees?
- How is insurance handled for part-time employees?
- How are bonuses and incentives handled for part-time employees? How much % do we need to pay as a bonus/incentive for part-time employees?

With thanks,
Rambu

Legal Considerations for Part-Time Employees

Legally, this question has to be answered in two parts:

1) The Act does not state the term "Part-Time Employee's." Why not? Because the legislature never intended to segregate workers based on the hours they work. Therefore, if there are part-time employees, one has to pay statutory contributions for them.

2) The Acid Test here is twofold:
a) He must have a Master-Servant relationship with the employer, meaning direct subordination. This implies he must be kept on the muster roll.
b) If he is working as a professional on a Principal-Principal basis, no contribution is needed.

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