Manpower tenders on GeM: EPF, ESIC and minimum wage basics

Pick the right manpower category

GeM has separate categories for manpower outsourcing — commonly minimum-wage based, fixed-remuneration based and man-days based — along with related categories such as housekeeping, sanitation, facility management and security manpower. They are priced and evaluated differently, and a bid is open only to sellers listed in its exact category. Read the category name on the bid before anything else.

How the price is built

In minimum-wage manpower bids, the cost per person is typically built from the minimum wage applicable to the skill level and location, plus statutory contributions (EPF, ESIC and others the bid lists), plus other allowances and costs the bid specifies, plus the service charge you quote. The bid shows how the total is calculated and on what sellers actually compete. In fixed-remuneration bids, the buyer specifies the pay, and statutory costs and service charge are added on top. Check whether the bid sets any rule on the minimum service charge or on abnormally low quotes.

Minimum wage: know which notification applies

Minimum wages are notified by the central government (for establishments in the central sphere) and by each state, by skill level (unskilled, semi-skilled, skilled, highly skilled) and often by area, and are revised periodically with variable dearness allowance. The bid normally says which applies. Use the latest notification for the work location, and remember that revisions during the contract have to be passed on to workers — check how the bid and contract handle that.

EPF and ESIC basics

• ✓EPF: covered employers deduct the employee's share and pay it with the employer's share to EPFO every month; the employer's share is a cost you must price in
• ✓ESIC: provides medical and cash benefits to employees within the wage ceiling notified by the government; both employer and employee contribute a percentage of wages
• ✓Contribution rates and wage ceilings are set by law and notifications; use the current figures and the cost heads the bid lists
• ✓The labour codes consolidate these laws and can change definitions such as "wages" as their provisions come into force — check what applies when you bid
• ✓You will need valid EPFO and ESIC registrations in your firm's name; bids often ask for them

Documents buyers usually ask for

• ✓EPFO and ESIC registration, GST registration and PAN
• ✓Labour licence under the applicable contract labour law, where required — often obtained after award for the specific establishment
• ✓Past performance / experience in manpower supply, unless exempted for MSEs/startups
• ✓Undertakings on paying wages through bank and complying with labour laws

Monthly compliance decides your payment

In manpower contracts, buyers commonly release each month's payment only after you show proof that wages were paid and EPF/ESIC deposited for the deployed staff — challans, ECR, wage sheets and bank transfer records. Late statutory deposits delay your bill and can lead to penalties. Budget working capital for at least one or two months of salaries, because you pay staff before the buyer pays you.

Frequently asked questions

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