Simplifying Subcontractor Paysheets: How to Use Them for PF and Compliance

Dear Friends,

Enclosed is the paysheet for subcontractors' workmen, which can be used for calculating the PF. It can be maintained as a register of muster roll, wages register, and register of overtime. Here, you have to fill in the Form 13 serial number, name, father's name, designation, wage rate, PF number, the day's attendance, and overtime hours in the respective columns. Take a printout for each subcontractor, obtain the signature from the workmen through subcontractor, and file it neatly. It can be produced to any labor inspector, factories inspector, PF officials, or whoever is visiting the site.

In case any changes are required, please let me know for further improvement.

While reviewing the muster roll, I am reminded of my dad who used this while working in the Personnel department. When I was young, I used to help him with this muster roll. Nice sheet, sir.

Thank you and warm regards,
Varsha

Actually, our subcontractors are writing the same information on printed forms. Checking and correcting these forms has become a Herculean task for my team. That's why I have created a new format that can be divided into three separate sheets, filed by subcontractor, and organized by month.

Thank you for your valuable comments, Varsha.

With warm regards,

S. Bhaskar
9099024667

Dear Bhaskar,

Thank you for sharing the format. However, you are only deducting PF on the Basic. In cases where there is DA, and the total earning (Basic + DA) exceeds 6,500, the formula you have set is not correct. Additionally, in the format you provided, ESI and PT deductions are missing (if applicable). An incomplete format will not be helpful for friends who do not have a comprehensive understanding of Statutory deductions. Kindly update the format again after making the necessary corrections.

Thank you.

Dear Mr. Durga Singh,

I have prepared this format for subcontractor workmen in the construction industry. In construction, ESI is not applicable. Up to now, I have not deducted any PT for labor class people (I have been in this field since 01 June 2005). PF will always be deducted from the Basic pay and not from the gross. I recommend referring to a thread posted by our CiteHR member on 08 Feb 2011 regarding the PF Deduction Judgement issued by the Punjab and Haryana High Court.

If the basic pay exceeds Rs. 6500/-, then instead of 8.33% for EPS, Rs. 541 should be considered, and the remaining amount should be carried over to the Employer PF Share, rather than 3.67%, which I have implemented while in Andhra Pradesh.

I trust that I have clarified your doubts. Thank you for your valuable feedback. Please review the thread "Guidebook on Labour Laws" for a basic understanding and also check out the "Contract Labour Act," "Minimum Wages Act," and "Payment of Wages Act" threads. Leave your comments in the relevant thread to help our team enhance their knowledge.

Our contracting company is engaged in fire and security. Please confirm whether ESIC is applicable or not. Additionally, when calculating wages, please consider the number of days present excluding Sundays. Is this correct?

Regards,
Anil Rathi

Dear Mr. Durga Singh,

Whoever posts any thread is not always correct, and whoever comments on that thread is not necessarily always wrong. We have to find out the correctness. Due to your question, I have clarified the doubt which many people might have thought but did not bring to my attention.

So, I must thank you for your query. Have a great day, Mr. Durga Singh.

We engage about 10 piecework contractors, each of whom will send 3 or 4 workers only for a few days, like 3 days, 4 days, etc. We are maintaining their attendance register. Should we maintain the wage register, or should we get a copy of the wage register maintained by each contractor? I understand that we need to have a license to engage contract labor, only if each contractor sends more than 10 workers. Please advise.

Guruprasanna B.K.

This is the moral responsibility of the Principal employer to ensure the maintenance of the requisite records. This format will help you to maintain the part of three forms, by which further you can make your PF Statement. If you add ESI, then you can also take the calculation from this spreadsheet and it will be helpful for preparing the Half-yearly and annual returns as well. You must obtain the license on behalf of the contractors engaged by you.

Great work. However, column BM indicates the date on which OT work was done and the amount of OT hours, whereas the formula set in columns K & L (rate of wages and OT) refers to column BM. Could you please clarify?

Thanks,
Gopal

I have just carried forward the BM column figure to the number of hours OT for the calculation of OT pay, Mr. Gopal. Here, I have done this to avoid retyping and to prevent clerical mistakes.

You can use the format given in this thread as your attendance register, overtime register, and even pay sheet. Otherwise, you can use the format that you require.

All the best.

Regards

A contract worker is entitled to 12 CL and 6 SL in a year. If he avails these leaves, can he be paid the daily wage for CL and SL, or 'no work, no pay' will be applied?

Annual leave with wages is provisioned under the Factory Act of 1948. Can it be provided/paid/encashed with the monthly wages of labor by the contractor?

Dear Sir/Madam,

Could you please assist me in preparing the Contract Labour Paysheet?

Thank you.