Understanding PF and ESIC Obligations for Cash Voucher Hired Labor: What Are Our Responsibilities?

We have a contract of service with material, and we appoint around 260-270 employees in the company, ensuring compliance with PF & ESIC regulations. When required, we hire labor on a cash voucher basis. In this scenario, are we liable for PF or ESIC contributions for the labor we hire using cash vouchers? Please guide.

Thank you.

When the number and attendance of workers are confirmed, all applicable contributions apply, regardless of the mode of payment.

But, do we hire the labor for only 2 or 4 days until we contribute to PF and ESIC?

Suggestion for Hiring Through a Labor Contractor

My suggestion is that if you have a labor contractor in your establishment, you may consider hiring these employees through the contractor to ensure social compliance, such as PF and ESI. In case of any accidents, the contractor would handle these issues.

If you continue to pay by cash voucher, you need to deduct PF and ESI.

Regards, Aswath Hari