Are Labor Contractors Entitled to Service Charges Beyond Gross Wages? Seeking Advice on PF, ESI, and More

akshon
Service Charges for Labor Contractors

Can someone help me with the following regarding service charges being paid to labor contractors?

Should the labor contractor who supplies manpower to the principal employer and pays the PF and ESI for his contract manpower deployed at the site of the principal employer claim service charges for gross wages + PF + ESI + bonus + gratuity + leave wage to ensure the liability of the principal employer is clear, or just the gross wages?

Requesting senior members on the site to kindly help me with this query.

Regards, Akshay
kumaracme
The service charges have to be paid for Gross Wages + PF + ESI + Bonus + Gratuity + Leave Wage to ensure clarity of the liability of the principal employer and not only on the Gross Wages.
saswatabanerjee
Negotiating Service Charges with the Principal Employer

This is a matter that the contractor has to negotiate with the Principal Employer. There is no rule of law involved. Whether his service charge will be on gross wages or including various benefits is a matter of negotiation.
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