Piece Rate workers wages

Dear All,

We are doing Manufacturing of Shirts.

in this regard we will Hire outside workers around 50 to 100 people to finish the goods ( packing & ironing) for temporary basis in a month.

My question is how can we book the expenditure for the same in the books of accounts and how can pay them wages since they are not in our company roll to deduct PF and ESI etc.,

Thanks
Replies (3)
Quick Summary
This discussion addresses how manufacturing businesses can account for and pay wages to temporary, outsourced workers hired for tasks like packing and ironing. It explores booking these expenses and highlights potential issues with PF and ESI deductions if the company is registered under these schemes, advising adherence to relevant laws.

Book them in factory admin & dist. expenses as

Labour expenses a/c

To Bank a/c

As much am aware, if ur company is registerd under EPF and Esic, u cannot pay labour directly.... means if on scrutiny EPF finds labour expenses in ur books they will raise a issue for Pf deduction

Ok, if there is a law, then better follow it.

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