Labour contractor - service charges

Sitaram Sishtla (15 Points)

27 March 2019  

Labour contractors will be paid service charges, normally as a % of bill amount. It is observed that in some companies service charges are being paid on total bill amount viz., Wages, Employer's contribution of ESI,PF, Bonus, Leave encashment etc. While in some companies it will be calculated on wages only. Wish to know, Is there any specific rule or guideline for calculating service charges of labour contractor.