How to Transition to Daily Wages Without Losing PF/ESIC Compliance?

RAJESHACS
Dear All, Please help me. Currently, we are following a statutory-compliant wage structure that includes PF and ESIC benefits for our employees. However, our management wants to transition to a daily wages structure without these benefits. We would like to ensure that this change complies with all relevant labor laws and regulations regarding PF/ESIC.

Consultant Model for Salaries

Secondly, can we process salaries for certain workers under a consultant model?
vmlakshminarayanan
Hi, A minimal number of employees (say 2 or 3) may be kept on consolidated pay (subject to TDs) as consultants. However, even those employees, if they work full-time, cannot be classified as consultants. Consultants are not eligible for any benefits applicable to regular employees and are expected to work solely based on assignments. If all employees are kept on consolidated pay during a statutory audit, questions will be raised, and many candidates may not prefer to work on a consolidated pay basis.
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