Verify Contract Labour PF & ESI Deposed Or Not - CiteHR
Natraj@sakthimanagement.com
Head - Outsourcing
Pan Singh Dangwal
Joint Manager
Saravanan_d_
Senior Manager - Statutory Compliance
+2 Others

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Derar Sir; How we will verified that contracter labour PF & ESI Deposed or not.
In ESI, you can use the facility of "IP Mapping with Contractor". For PF, you can get the "Para 36B Proforma" filled and signed by the contractor, every month; along with the PF paid challan.
Pl instruct the Contractor to submit copies of ECR (both PF & ESI) every month for your verification. Better to get soft copies so that you can update the data every month.
Regards
N Nataraajhan, Sakthi Management Services (Hp:+919483517402;e-mail:natraj@sakthimanagement.com)

ECR checking is the best way to cross check the contractual labour PF-ESI.
I have prepared one format for my company thru which Wages, PF, ESI, PT etc. statutory obligation can be checked. It is a type of undertaking from the contractor which is required to be submitted alongwith the monthly bills (previous month data need to be submitted in current month invoice. Though there is no legal authenticity of the format, since it is signed by the contractor so this create some pressure and we get updated monthly data.
This is also helpful where the contractor is working on some % basis of monthly CTC of contractual labour.
Hope this will help you. For more clarification, fellow members can suggest their valued advice/s.


Attached Files
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File Type: xls Contractor's Declaration Format-Wages, ESI,EPF.xls (78.0 KB, 631 views)

Besides ECR N challan one needs to do the following:
Ask for Remittance Confirmation Slip (RCS)
Ensure 'TRRN' is same for ECR, challan n RCS.
Ensure challan displays contributions for all the accounts.
RCS is the proof that the amounts have reached the PF office.
Most of all, cross check ECR contributions with wage register & pay slip for few employees.
This is total check!

Okay!!!
I do appreciate obtaining ECR from the contractor. With these procedures, we can confirm that they made the payment to particular employee. But, for eg., if the contractor has 10,000 or more employees (like G4S or ISS) in all over India, their PF contribution is from one location (eg., gurgoan or patna) and only 3 employees are working with you (say, in Chennai), then, I think ECR collection (which contains the details of 10,000+ employees) will be unnecessary time consuming work.
During Statutory Audit, the physical documentation is only valid, like Screenshot of "IP Mapping" in ESI and "Para 36B Proforma" for PF along with paid challans. Self developed excel sheets may be useful for tracking but it can't be a statutory document..
Please correct me, if I'm wrong...

Please ask for soft copy of ECR file and verify. G4S & ISS are reputed vendors but still you need to ensure that they have not missed out any of your site employees. Work may be time consuming but it will guard you against future blues.
The contractor is submitting copies of the challan, however, can somebody help me by letting me know, how to actually check the challan, whether the amounts mentioned are the actual deductions the contractor is required to make.
for ex. if the basic pay of a contract worker is Rs. 17000.00, then how much is to be deducted on account of EPF and ESIC and deposited with Authorities.

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