hi, can anybody suggest me PF contribution will recover from Total wages in respect of contract labour as because there is no basic wage. Thanks mantu71
From India, Calcutta
Hi Manu,
It can be happen, If the Principal Employer paid the PF contribution of the contract employees to the PF authority from their account. So in that case, principle employer can recover the same from Contractor.
because, PF, ESIC , PT , MLWF etc all payment should be paid by contractor. Its contractor's responsibility.
but, If Contractor has not paid any type of payment to the social securities authority, that, case all liability comes on principle employer.
& Principle employer has to pay the same with interest charges & Damage charges (If applicable) can be recover the same from the Contractor.
Regards,

From India, Mumbai
hi Mantu
If the contractor is paying consolidated wages you have to deduct PF on entire wage. However you need to check if the consolidated wage is equivalent to prevailing minimum wage presribed by the labour deptt.or not. Its better to be on the safe side, otherwise if the contractor gives a braekup of salary where basic +da is equivalent to min wage then PF can be deducted on that amt.


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