Reimbursement of minimum wages

Is hardship allowance, tunnel allowance, leave pay and overtime are to be reimbursed to contractors? Is it statutory component of minimum wages? In our contract agreement with contractors only minimum wages are payable notified by appropriate Govt.? Contractor is paying all above allowance in addition to minimum wages EPF & ESI. Should we reimburse only minimum wages, ESI & EPF ONLY? pl. Advice. I belongs to CPSE..

It depends how you fix the contractor's rate.

Since most contractors work on less than 10% commission (out of which 2% goes in TDS), I doubt if the contractor can pay all these 'Allowances' on his own. There won't be margin for the same