ESI & PF

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This discussion clarifies the applicability of Employees' State Insurance (ESI) and Provident Fund (PF) for building construction companies employing daily wage workers. The general rule is that ESI & PF apply if 10 or more workers are employed, with monthly wages not exceeding Rs 21,000 for ESI. Contractors are typically liable for deductions, but the principal employer (the building construction company) can be held responsible if the contractor fails to comply. Practical challenges with non-constant workers were raised, with a suggestion to proceed if authorities aren't issuing notices.

gurram

gurram (Querist)

05 February 2021 I have a Building Construction Company and i give construction for contractors who will recruit the daily wage workers and the daily wage workers are not constant throughout year .
Is ESI & PF is applicable ? if Yes ,
Who is liable to Deduct "Building Construction Company" Or "Contractors"

Thanks in Advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 February 2021 ESI and PF applicable if more than 20 workers are employed. Contractors are liable if they fail company is liable as principal employer.

gurram

gurram (Querist)

05 February 2021 Thanks for the reply
Is Esi pf to be deducted for daily wage workers even though they are not constant
It is not possible in practical application know sir
Please reply sir
If there are any resources please link me

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 February 2021 If practically not possible and the concerned authorities not issuing compliance notice you can leave it.

gurram

gurram (Querist)

07 February 2021 Building construction company and contractors are from tamilnadu.when the esi is liable be deducted is if workers are 20 or 10 there is a confusion ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 February 2021 Applicability of the ESI scheme
The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries' monthly wage does not exceed Rs 21,000 are covered under the scheme.

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