Recent Supreme Court rulings clarify that EPF must be calculated on all cash allowances that are universally and uniformly paid to employees, as these form part of basic remuneration. Only allowances tied strictly to incentives, overtime, performance, or statutory exclusions such as HRA may be exempt. We specialize in structuring Sri City payrolls to withstand Section 7A audit scrutiny.

Continuous 24/7 operations mean that every shift and every hour of work falls under ESIC coverage. ESIC wages must include shift allowances, and all employees—including temporary or peak-season labour—must be registered immediately and issued E-Pehchan Cards. Delays may trigger ESIC inspections or backdated contribution demands.

Your liability is absolute. Under the EPF Act (Para 30 and 39) and the ESIC Act (Section 40), the Principal Employer is legally responsible for ensuring contractors deposit PF and ESIC contributions correctly. If a contractor defaults, the EPFO or ESIC can recover the dues, penalties, and damages directly from the Principal Employer, including through attachment of assets.

No. Although SEZ units receive tax and customs benefits, they must fully comply with all Central Labour Laws, including the EPF & MP Act, 1952 and the ESIC Act, 1948. SEZ status does not exempt any establishment from statutory PF or ESIC obligations.