| Dear all, I would like share some of the information with regard to ‘ EMPLOYEES’ PROVIDENT FUND SCHEMES ROPE INTERNATIONAL WORKERS’ There is a fundamental change in the Employees Provident Fund & Pension scheme covering the international workers and such amendment is published in the Gazette if India no. 538, dated October 2008. SALIENT FEATURES The employees qualifying as international workers will contribute to the EPF schemes and the employers would also be required to contribute in equal. Like employment Provident Fund Act there is no limit wage/salary ceiling for international workers. The employees effected or benefited would include expatriates (foreign citizens) working in India and even for Indian employees working in abroad. But the exemption under the above scheme is for the employees from those countries with which India has signed Social Security Agreements. India has currently finalized those agreements with Belgium, France, Germany. WHAT EVERY EMPLOYER NEED TO COMPLAY To send the Provident Fund Commissioner, within fifteen days of the commencement of the scheme, ( 01.11.08, a consolidated return in such form as prescribed by the Commissioner may Specify of the International Worker indicating the nationality of the each and every worker required or entitled to become member of the fund showing the basic of the wage, retaining allowances. However, if there is no international worker who is required to entitled to become a member of the fund, the employer shall send “Nil returns” To send to the commissioner, within 15 days of close of each month, a return in Form 5 of the International workers qualifying to become a member of the fund for the first time during the preceding month together with declaration in form 2 to furnish by such qualifying international workers ( indicating distantly the nationality of each and every international worker. INTERNATIONAL WORKER – DEDUCTION OF PROVIDENT FUND The international workers in the simple since as per notification mean the a) Person not having Indian Passport and working for the entity to which PF Act applies ( foreigners working in India ) b) Persons having Indian passport and contributing to the social security funds of other countries ( Indian workers working for Indian companies abroad ) Accordingly all the Indian companies are required to contribute / deduct the PF for such employees @ 24% to EPFO. If anybody is having other information in respect of this please notify. Thanks, bvijaykk Few queries.. - Is there any distinction of Indian Company and Foreign Company for payment of PF for international workers? - Does the Foreign Company need to pay/contribute PF for international worker, where, 1. If a foreign company operating in India with the permission of RBI, egaging international workers from India 2. engaging international workers from outside India? Regards Subra
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