Contractor Allowances: Should We Reimburse More Than Just Minimum Wages and Benefits?

Reimbursement of Allowances to Contractors

Is hardship allowance, tunnel allowance, leave pay, and overtime to be reimbursed to contractors? Is it a statutory component of minimum wages?

In our contract agreement with contractors, only minimum wages are payable as notified by the appropriate government. The contractor is paying all the above allowances in addition to minimum wages, EPF, and ESI.

Should we reimburse only minimum wages, ESI, and EPF only? Please advise. I belong to CPSE.

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