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Pay bifurcation of contract labourers to minimize PF contribution

GOVERNMENT OF INDIA
MINISTRY OF  LABOUR AND EMPLOYMENT
RAJYA SABHA

UNSTARRED QUESTION NO-338

ANSWERED ON-09.07.2014

Pay bifurcation of contract labourers to minimize PF contribution

338 . SHRIMATI WANSUK SYIEM

(a)whether many private placement agencies supplying contract labour to Government Departments have been bifurcating wages into basic wage and allowances to minimize on Provident Fund contributions which are reckoned on basic pay;
(b)whether the Central Government along with Public Sector Undertakings (PSUs) employ around 18.4 lakh contract workers;
(c)whether the Central Labour Commissioners have recently conducted a reality check in the Ministries and Departments employing contract labour; and
(d)if so, a summary of the findings of the same?

ANSWER

MINISTER OF STATE FOR STEEL, MINES, LABOUR & EMPLOYMENT (SHRI VISHNU DEO SAI)

(a): No such complaint has been received in the offices of Chief Labour Commissioner (Central) which is the enforcement agency for various labour laws in Central sphere.
(b): Yes Sir, in the year 2011-12 the number of contract workers engaged by the Licensed contractors in the Central Government and Central Public Sector Undertakings (CPSUs) was around 18.4 Lakh.
(c) & (d): Yes, Office of the Regional Labour Commissioner (Central), New Delhi has conducted inspections of 14 Principal employers and 17 Contractors in various Ministries and Departments in the recent past. Wherever violations were detected action has been initiated by filing prosecutions in the appropriate court.
The enforcement of various labour laws for the year 2013-14 in respect of Central Sphere is enclosed at Annexure-A.
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HINDI_VERSION with Annexure A https://pqars.nic.in/qhindi/232/Au338.docx

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