In contract staffing, you're the employer of record for people working at your clients' sites. That means payroll, statutory contributions and records, every month, and clients who expect proof that it's all been done.
Statutory rules depend on the location, the number of employees and their wages. Check the current requirements with your adviser.
The monthly cycle
- Collect client-approved timesheets for every deployed person.
- Run payroll for the month, including overtime and allowances agreed with the client.
- Pay salaries on the agreed date.
- Pay statutory dues. In India, typically PF and ESI by the 15th of the following month, and TDS on salaries by the 7th; in Singapore, CPF by the 14th.
- Send the compliance pack to the client: challans, payment proofs, wage registers as required.
- Invoice the client: wages, statutory costs and your service fee.
Why clients ask for proof
In India, a principal employer can be held responsible if a contractor fails to pay statutory dues for staff deployed at its premises. That's why many clients won't release payment without the compliance pack. Make it part of your invoice.
Handle joiners and leavers properly
- Register new joiners for PF and ESI (or CPF) promptly.
- Settle leavers' final dues on time.
- Replace leavers quickly, especially where the contract has service levels.
Keep the margin visible
Your margin is the fee over wages and statutory costs. Watch overtime, unpaid leave and replacements: each changes the economics of a contract.
How MSMEPulse helps
MSMEPulse's contract staffing template runs the monthly cycle as tasks, with client-approved timesheets and statutory payment proofs on the checklist. Payroll for India (PF, ESI, professional tax, TDS) and Singapore (CPF, SDL) runs in MSMEPulse, and the client invoice goes out with the right GST.
