Navigating PF/ESI and Wage Compliance for Daily Workers: Your Post-COVID Guide

Payment of PF/ESI to Daily Wage Workers

Should we pay PF/ESI to daily wage workers who come randomly when required? The daily wage ranges from 700 to 1000.

Minimum Wage Compliance for Daily Wage Workers

Also, do we face any issues with minimum wage when paying daily wage workers? Should we follow any registers for this, and how do we show payments made in cash to the workers?

Maintaining Records Post-COVID-19

After the COVID-19 pandemic, how do we maintain various records in all statutory fields? Please provide an eligible format if possible.

Payment of PF/ESI for Daily Wage Workers

According to Indian labor laws, both Provident Fund (PF) and Employee State Insurance (ESI) contributions are mandatory for daily wage workers. The PF contribution is calculated on the actual daily wages earned by the worker, ranging from 700 to 1000 in this case. Similarly, ESI contributions are also applicable based on the daily wage amount.

Minimum Wage Compliance

It is crucial to ensure that the daily wage paid to workers complies with the minimum wage requirements set by the government. Failure to meet minimum wage standards can lead to legal repercussions.

Register Maintenance and Cash Payments

Maintain detailed registers for daily wage workers, including attendance, wages paid, PF/ESI deductions, and other relevant details. Clearly record cash payments made to workers with receipts or vouchers, specifying the amount paid, date, and purpose.

Digitization of Labor Records Post-COVID

In the post-COVID era, digitizing labor records is essential for efficiency and compliance. Use digital platforms or software to maintain records of daily wage workers, PF/ESI contributions, minimum wage compliance, and other statutory requirements. Ensure data security and backup measures are in place to prevent the loss of critical information.

Statutory Record Maintenance Format

Consider using spreadsheets or specialized HR software to organize and store data effectively. Include sections for worker details, daily wage rates, PF/ESI deductions, payment records, and compliance status. Regularly update and audit digital records to ensure accuracy and compliance.

By following these steps and maintaining accurate records, you can ensure legal compliance and smooth operations when employing daily wage workers post-COVID.