What the template contains
- Header block: agency name and GSTIN, principal employer name and GSTIN, work order or contract reference, state of deployment and the billing period
- Worker category table: designation, skill level, headcount and the attendance or days basis for each line, since wage floors differ by category
- Wage base section: basic pay, dearness allowance and retaining allowance (the defined wages figure), with a minimum-wage and floor-wage compliance check
- Statutory employer cost block: EPF at 12 percent with the EPS split, EPF administrative and EDLI charges, ESI at 3.25 percent within the wage ceiling, and provisions for bonus, gratuity and paid leave
- Cost to company subtotal per worker and per category line
- Commercial block: the service charge or management fee, shown as a clear percentage or a fixed amount
- Tax block: GST at 18 percent under SAC 9985 split into CGST plus SGST or IGST, plus a note on the client's TDS deduction under Section 194C
- Total billable amount per worker, per category and a grand total for the billing period
- Compliance footer: contract-labour licence reference, GSTINs, and a note on the principal-employer wage backstop under OSH Code Chapter XI
- Assumptions and rate-verification notes: space to record the notified rates, wage ceilings and state thresholds used, with the date each figure was checked
How to use it
- Fill the header with your GSTIN, the client's GSTIN, the work order reference, the state of deployment and the billing period.
- Add one row per worker category. Enter the wage base (basic plus dearness allowance) for each and confirm it is at or above the minimum wage notified for that state and skill level.
- Compute each statutory employer cost on the defined wage base: EPF at 12 percent plus administrative and EDLI charges, ESI at 3.25 percent for workers within the wage ceiling, and the bonus, gratuity and paid-leave provisions.
- Add the wage base and all statutory costs to get the cost to company. This is your floor rate per worker, below which you cannot bill and stay compliant.
- Add your service charge, as a percentage or a fixed amount, to reach the pre-tax billable amount.
- Apply GST at 18 percent under SAC 9985 on the full taxable value, split as CGST plus SGST for intra-state supply or IGST for inter-state supply, to get the total billable amount.
- Record the client's expected TDS under Section 194C as a cash-flow note. It reduces what you receive, not the invoice value.
- Before you quote or invoice, verify every rate, wage ceiling and licence threshold against the rule notified for your state, and record the date checked in the assumptions block.
- Attach the completed sheet to your quotation and reuse it as the backing calculation for each cycle's tax invoice.
Key fields and clauses
| Field or clause | What to put |
|---|---|
| Worker category and headcount | Designation, skill level and number of workers per line, each category costed separately because wage floors differ. |
| Wage base (Basic plus DA) | Basic pay plus dearness allowance and any retaining allowance: this is the wages figure on which most statutory contributions are computed. |
| Minimum-wage and floor-wage check | Confirm the wage line meets the minimum wage notified for the state and skill category and is not below the floor wage. |
| EPF employer contribution | Employer 12 percent of wages, of which 8.33 percent goes to EPS subject to the pension wage ceiling and the balance to EPF. |
| EPF admin and EDLI charges | Employer administrative and EDLI charges over and above the 12 percent, shown as a separate line so margin is not eroded. |
| ESI employer contribution | Employer 3.25 percent of wages for workers within the ESI wage ceiling of Rs 21,000 per month (Rs 25,000 for persons with disability). |
| Statutory bonus provision | Provision between the 8.33 percent minimum and 20 percent maximum of wages under the Code on Wages, per eligibility and ceilings. |
| Gratuity provision | Monthly accrual using the 15/26 factor; fixed-term workers accrue pro-rata without the five-year continuous-service condition. |
| Paid-leave provision | Cost of annual leave with wages, accrued at one day for every twenty days worked under the OSH Code. |
| Cost to company subtotal | Wage base plus all statutory employer costs: the true floor below which the worker cannot be billed. |
| Service charge or management fee | The agency margin, shown clearly as a percentage or a fixed amount on the cost to company. |
| GST (SAC 9985, 18 percent) | 18 percent on the full taxable value, split CGST plus SGST for intra-state supply or IGST for inter-state supply. |
| TDS note (Section 194C) | Flag the client's deduction at 1 percent for individual or HUF and 2 percent for others: it affects cash flow, not the invoice value. |
| Contract-labour licence and principal-employer clause | Reference the contractor licence and the OSH Code Chapter XI Section 55 wage backstop so both sides see the compliance basis of the rate. |
Why this document matters
The cost lines in this sheet map to India's labour codes and to GST and income-tax law. Wages, and so the base on which most contributions are computed, follow the Code on Wages definition: basic pay, dearness allowance and retaining allowance, with allowances such as HRA, conveyance and overtime excluded, subject to the code's proviso that excluded allowances above one-half of total remuneration are added back. Minimum wage under Section 5 and floor wage under Section 9 set the floor for the wage line, and Sections 16 and 17 fix the wage period and payment timelines. EPF, ESI, statutory bonus and gratuity arise under the Code on Social Security 2020, and paid leave (one day for every twenty days worked) under the OSH Code 2020 Chapter VII. Contract-labour deployment itself is governed by the OSH Code 2020 Chapter XI: contractor licensing under Section 47, no fee or commission charged to workers under Section 49, welfare facilities under Section 53, and, critically, the principal employer's liability under Section 55 to pay wages if the contractor defaults and to recover the amount from the contractor, including from the licence security deposit. GST on manpower supply is 18 percent under SAC 9985, charged on the full billed value and not only the margin, and the client deducts TDS under Section 194C of the Income-tax Act. The labour codes came into force on 21 November 2025 with Central Rules notified on 8 May 2026, and the CLRA 1970 and BOCW 1996 are subsumed into the OSH Code. Rates, wage ceilings and the contract-labour licence threshold vary and are set by notified rules, so confirm each figure against the rate notified for your state before you quote.
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Get the templateCommon questions
Should GST be charged on the full bill or only on our service charge?
On the full taxable value, meaning the entire amount billed (wages plus statutory costs plus service charge), at 18 percent under SAC 9985, not only on the margin. Note that security services supplied by a non-body-corporate to a registered recipient fall under the reverse charge mechanism, where the recipient pays the GST instead of the supplier.
Which components count as wages for EPF, ESI, bonus and gratuity?
Under the Code on Wages, wages means basic pay, dearness allowance and retaining allowance. HRA, conveyance, overtime and similar allowances are excluded, but if the excluded allowances exceed one-half of total remuneration the excess is added back to wages. Compute statutory contributions on this defined wage base, not on the full gross.
What happens if our quoted rate does not fully cover statutory dues?
Under OSH Code Chapter XI Section 55, the principal employer can be made to pay the shortfall directly to the workers and recover it from you, including out of your licence security deposit, and short payment risks action on your contractor licence. A correctly built cost sheet is your evidence that the rate funds every statutory obligation.