Can a PF Inspector Check Records if Your Project is in a Different Area? Seeking Clarity

PF Inspector's Rights Across Different Areas

Can any PF inspector conduct an inspection when we are working in their area, but we are covered from a different area?

For example, if we are covered by RPFC Mumbai and working on projects in Delhi, does the Delhi PF inspector have the right to check our records and conduct inspections? What are the rights of a PF inspector when conducting inspections for units or companies in different areas?

Thanks & Regards,

SUNIL SHARMA

The PF Inspector of your work area has the right to conduct inspections on your premises even though you are covered under a different PF Commissionerate. He will request payment details made to the subcontractors from your accounts and use that information to check the PF remittance details. If the subcontractor is purely a labor supplier, then 75 to 80% of the amount will be considered for PF remittance. If the subcontractor has undertaken the work with materials, then 30% of the bill amount will be considered as labor payment, and around 50 to 55% will be for material costs. The remaining 15 to 20% will be the profit for the contractor.

Another way the PF remittance is verified is by obtaining monthly consolidated labor reports (subcontractor-wise), and then verifying the number of workers and days each worker has been covered under PF. This allows the inspector to identify any underpayment of PF.

Thank you.