Hi All,

I am working in a manufacturing company. We engage piece-rate contract workers in our organization. They will not be regular but based on our requirement. Can anybody suggest how we can regularize statutory regulations (PF & ESI) for them?

Regards,
Rama

From India, Bangalore
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As per the PF Act, all contractual workers are eligible for PF/ESIC, and it is the duty of the contractor to deduct and make payments towards PF/ESIC from their employees. However, the responsibility always lies with the Principal employer.

Hence, irrespective of the number of days worked, they are eligible for PF/ESIC, and you have to open a PF account for all such employees.

Hope this clears your doubt.

Regards,
Asmita

From India, Mumbai
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Hi Asmita,

Thank you for your information.

Could you please provide guidance on how to proceed? Essentially, they submit bills, and the bill amounts will vary from month to month. How do we calculate for PF & ESI? Is there a specific format or procedure that is typically used? Please provide an update.

This is very urgent.

Rama

From India, Bangalore
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