Navigating PF and ESI Compliance for Contract Workers with Varied Wages

We are a Central Govt. PSU going to engage contract labor for the operation and annual maintenance of various electrical services in the office premises. We have applied for the Principal Employer certificate also. We need to have two sets of different contractors A & B having 12 & 4 workmen respectively. All the workmen will be new entrants to PF. As per the present minimum wages, all their monthly wages are above Rs.15000/-.

PF Compliance for Wages Above Rs.15000/-

We need to know:

(1) Since monthly wages are above Rs.15000/-, do they need to comply with PF norms?

PF and EDLI Contributions for Part-Time Work

(2) In case a laborer works for about 20 days and his monthly wages are less than Rs.15000/-, in which case, are the PF, PF admin, and EDLI (both employer/employee shares) to be paid?

ESI Act Compliance for Wages Below Rs.21000/-

(3) Since the monthly wages are less than Rs.21000/-, we hope that they need to comply with the ESI Act, isn’t it?

Dear Selva, please find the reply to your queries below:

PF Compliance for Wages Above Rs.15000/-

(1) Since monthly wages are above Rs.15000/-, do they need to comply with PF norms? - If a contract employee provided by the contractor was ever a member of PF, then PF deduction has to be there even though the salary limit crosses Rs.15000/-. For the rest, it is okay if PF is not contributed above Rs.15000/- salary.

PF and EDLI Contributions for Part-Time Work

(2) In case a laborer works for about 20 days and his monthly wages are less than Rs.15000/-, in which case, are the PF, PF admin, and EDLI (both employer/employee shares) to be paid? - NO

ESI Act Compliance for Wages Below Rs.21000/-

(3) Since the monthly wages are less than Rs.21000/-, we hope that they need to comply with the ESI Act, isn’t it? - Yes