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Salary calculation for Subcontractor

blossom2019
Member
Thu, 13 Feb 2020 05:34:08 PM  (Last updated: Fri, 14 Feb 2020 04:30:38 PM)

Hi , 

Appreciate your advice on the Salary calculation for Subcontractor and also what is the benefits & compensation for this category? Is this category the salary calculation same as permanent staff and their benefits? 

Thank you in advance. 

KL Siew
Administrator
Thu, 13 Feb 2020 08:47:19 PM

What do you mean by subcontractor, is he your employee? Do you pay monthly salary, contribute to EPF SOCSO? If he is not, then the terms and conditions in the subcontract agreement shall apply.

blossom2019
Member
Fri, 14 Feb 2020 10:22:16 AM
Originally posted by KL Siew on Thu, 13 Feb 2020 08:47:19 PM

What do you mean by subcontractor, is he your employee? Do you pay monthly salary, contribute to EPF SOCSO? If he is not, then the terms and conditions in the subcontract agreement shall apply.

Hi Siew, 

Subcontractor means 3rd party workers. We do not pay their salaries, but we pay based on how many things they can accomplish in a day. If in this case , do we need to contribute to EPF / SOCSO all? Are they protected under the law? 

Thank you

KL Siew
Administrator
Fri, 14 Feb 2020 10:43:30 AM

Do you mean all the workers are supplied by one subcontractor and how many are supplied by the subcontractor?

2. Do these 3rd party workers work at your place?

blossom2019
Member
Fri, 14 Feb 2020 02:08:02 PM
Originally posted by KL Siew on Fri, 14 Feb 2020 10:43:30 AM

Do you mean all the workers are supplied by one subcontractor and how many are supplied by the subcontractor?

2. Do these 3rd party workers work at your place?

Yes, supplied by one subcontractor and below 20 of them. 

2. Yes, all this 3rd party workers work at my work place. 

KL Siew
Administrator
Fri, 14 Feb 2020 03:07:47 PM

If that is the case, the contractor is responsible for his workers in respect of payment of wages, contribution to EPF and SOCSO. You should make sure a proper contrac agreement is drawn up. Get a lawyer to draw up the contract. A proper contract between the company and contractor is very important because the company is still liable as a principal.

Make sure the contractor pay his workers promptly, contribute to EPF and SOCSO and follow the Employment Act, in terms of working hours, annual leave, sick leave and so on.

blossom2019
Member
Fri, 14 Feb 2020 04:30:38 PM

Thank you so much for your advice.