We are main contractor and have sub contractors for construction work of client. Apart from some regular workers contractors hire most of the workers on daily wages. To some he is paying @ minimum rate i.e. Rs. 202/- skilled and Rs. 187 unskilled but for some he is showing in wages register Rs. 6600/- so that PF liability is avoided, is it possible ? We told him that if he is paying on monthly basis then it should be reflected as Basic+DA+HRA+allowances. Which way is correct. Generally we say contractor to submit PF/ESIC challans on daily manpower deputed at site.
pls advise.
sanjeev chauhan

From India, Mumbai
you may mention Basic + DA =6600 since PF is deducted on the sum of basic + DA. HRA & other allowance either excluded from salary structure or can put additionally.
From Netherlands , Amsterdam
Hi. Please direct your sub contractor to pay as per the Minimum Wages Act. It would save you of any liability.
From India, Pune

associate consultant
dear mr chauhan,
First of all compliance of ESI and EPF will be very essential if the laws are attracted, say the acts are applicable. It is in your interest to ensure compliances of these laws since the activity is construction and ultimately the principal employer is held liable. So pleasure ask the sub contractor to comply with these laws strictly.

From India , Pune
I have labour contract and i pay to workers of Rs.850/- daily so PF deduction are necessary?
From India, Ahmedabad
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