Hi all, I have started a contract labor service and I want to know whether we have to pay the exact amount for PF and ESI which is paid by the company as part of their salary structure to the employees' PF and ESI accounts without changing the basic salary. Can anyone please suggest to me if the salary structure can be changed by the contract owner?
From India, Chennai
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From India, Chennai
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Employer Responsibilities in Contract Labor
As a contractor, you are the employer of all your employees. The employer-employee relationship is between your organization and the employees, not with the client (Principal Employer). The Principal Employer is accountable if you do not stay compliant with the CLRA and many legislations. Perhaps the Principal Employer has drafted the salary structure on your behalf. It is not recommended to tamper with the calculations yourself. If you have any confusion regarding the workings or suggestions, it is better to check with the Principal Employer as well.
I also recommend referring to the compliance calendar for Tamil Nadu: https://qr.ae/pGMg8Q
From India, Bangalore
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202As a contractor, you are the employer of all your employees. The employer-employee relationship is between your organization and the employees, not with the client (Principal Employer). The Principal Employer is accountable if you do not stay compliant with the CLRA and many legislations. Perhaps the Principal Employer has drafted the salary structure on your behalf. It is not recommended to tamper with the calculations yourself. If you have any confusion regarding the workings or suggestions, it is better to check with the Principal Employer as well.
I also recommend referring to the compliance calendar for Tamil Nadu: https://qr.ae/pGMg8Q
From India, Bangalore
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Creating a Competitive Salary Structure.doc
Salary Structure.zip