Dear Friends,
I am working in a public limited company. The company has locations outside India as well as subsidiaries outside India. Some of our employees are seconded to subsidiary companies for a fixed period of 3-5 years. We also transfer employees to foreign locations. Do these employees need to contribute to their PF fund? We strike off their names from the muster roll.
From India, Jharsuguda
Acknowledge(0)
Amend(0)
I am working in a public limited company. The company has locations outside India as well as subsidiaries outside India. Some of our employees are seconded to subsidiary companies for a fixed period of 3-5 years. We also transfer employees to foreign locations. Do these employees need to contribute to their PF fund? We strike off their names from the muster roll.
From India, Jharsuguda
Acknowledge(0)Amend(0)
dear if they are on your roll and you are making payment from your salary sheet ,than PF DEDUCTION will be there otherwise not. tks js malik
From India, Delhi
Acknowledge(0)Amend(0)
174From India, Delhi
Acknowledge(0)Amend(0)
If the pay of your employees who have been directed to work in a foreign country is paid in India, then they are covered by EPF. However, if they are directly paid by the establishment in the foreign country, then they will not be covered in India but will be covered by the legislation of that country.
There is a notification regarding the coverage of EPF (India) for international workers (employees of India working in a foreign country are also considered international workers). An employee of an establishment in India will be covered if they work in a foreign country with whom India has made a Social Security Arrangement.
As of today, Social security agreements have been signed with Belgium, France, and Germany. The date of entry into force is yet to be notified. Negotiations are at various stages with The Netherlands, Czech Republic, Hungary, Norway, Switzerland, Sweden, Luxembourg, USA, and Australia.
In this circumstance, you should not have removed their names from the rolls. For better understanding, please contact the Enforcement Officer of the Employees Provident Fund Organization.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
There is a notification regarding the coverage of EPF (India) for international workers (employees of India working in a foreign country are also considered international workers). An employee of an establishment in India will be covered if they work in a foreign country with whom India has made a Social Security Arrangement.
As of today, Social security agreements have been signed with Belgium, France, and Germany. The date of entry into force is yet to be notified. Negotiations are at various stages with The Netherlands, Czech Republic, Hungary, Norway, Switzerland, Sweden, Luxembourg, USA, and Australia.
In this circumstance, you should not have removed their names from the rolls. For better understanding, please contact the Enforcement Officer of the Employees Provident Fund Organization.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
PF a Must for Expats Working in India
Expatriates working in India and some Indians working abroad for an Indian employer are required to make mandatory contributions to the Indian government's statutory provident fund.
The provident fund contributions fund two programs:
1. The Employees Provident Fund, a compulsory savings program, and
2. The Employee's Pension Scheme.
On October 1, 2008, through a notification in the Official Gazette, the Ministry of Labour and Employment in India extended the scope of the Employees Provident Fund and Miscellaneous Provisions Act 1952 to include international workers (both Indians working outside the country and non-Indian citizens working in India) who are now required to contribute 12 percent of their basic salary plus dearness allowance, the cash value of food concession and retaining allowance (matched by an amount equal to the employee's 12 percent contribution payable by the employer) to the Employees' Provident Fund Organization (EPFO) that implements the Employees Provident Fund Scheme (the 'EPF Scheme'), irrespective of the contributions they may be making to such schemes in other countries.
The Employees Provident Fund and Miscellaneous Provisions Act 1952 provides for the institution of:
- Provident Funds,
- Pension Funds, and
- Deposit-Linked Insurance Fund.
Establishments employing 20 or more persons and engaged in any of the 180 industries or classes of businesses (encompassing most activities) specified are covered under the scope of the Employees Provident Fund and Miscellaneous Provisions Act 1952 (the EPF Act).
Also, contributions are mandatory for employees who earn up to Rs 6,500. The EPF Act can extend to other establishments that are not mentioned in the EPF Act by way of notification in the Official Gazette issued by the government.
It is important to note that once an establishment has been under the purview of the EPF Act, it continues to be covered under the EPF Act, even if the number of employees is fewer than 20 at a later date.
Participation in the EPF Scheme is compulsory for employees in almost all establishments in India that meet the basic qualifying criterion of employing 20 or more persons. Since the EPF Act applies automatically to qualifying establishments, employers are required to file the particulars in the specified format for registration and allotment of a business number.
The EPF Act and the relevant rules provide that the Employer's contribution to the EPF will be at the rate of 12 percent of the wages, including the basic wages, dearness allowance, and retaining allowance (if any), on its part and an equivalent amount on behalf of the employee, which is to be recovered from the employee's salary.
The EPF Act also provides for exemption from the operation of the EPF Act in certain instances determined on a case-by-case basis.
Apart from granting exemption to an establishment from the operation of a particular scheme, the Act also provides for the grant of exemption to an individual employee and also to a class of employees. Thus, an exemption from the operation of the scheme is granted.
If an organization finds that the Employees Provident Fund and Miscellaneous Provisions Act 1952 is applicable to it, then it should fill in the prescribed form for registration. The form, along with one or more of the supporting documents, should be submitted to the respective provident fund offices for registration.
The statutory contributions are deducted from the salary of the employees, and equal contributions are being made by the employers. This has increased the cost of human resources for employers.
Until now, foreign nationals working in India and Indian nationals working outside the country were not required to contribute to any social security or pension scheme in India. The recent change is expected to encourage more countries to establish social security totalization agreements with India.
India has such agreements with Belgium, France, and Germany and is negotiating similar agreements with Oman, the Netherlands, and Bahrain.
India and the United States have been discussing a totalization agreement since 2006 but have not yet reached a consensus.
Expatriate employees are expected to be allowed to withdraw accumulated contributions when they meet the normal eligibility requirements at the end of 10 years of service.
They could also make withdrawals in keeping with a social security totalization agreement if they belong to one of the countries that has such an agreement with India or if the employee's home country has a reciprocal arrangement which permits withdrawals by Indian employees in their country.
Regards
Davis John
HR Generalist
BreadTalk - India
+919966003210
From India, Hyderabad
Acknowledge(0)Amend(0)
Expatriates working in India and some Indians working abroad for an Indian employer are required to make mandatory contributions to the Indian government's statutory provident fund.
The provident fund contributions fund two programs:
1. The Employees Provident Fund, a compulsory savings program, and
2. The Employee's Pension Scheme.
On October 1, 2008, through a notification in the Official Gazette, the Ministry of Labour and Employment in India extended the scope of the Employees Provident Fund and Miscellaneous Provisions Act 1952 to include international workers (both Indians working outside the country and non-Indian citizens working in India) who are now required to contribute 12 percent of their basic salary plus dearness allowance, the cash value of food concession and retaining allowance (matched by an amount equal to the employee's 12 percent contribution payable by the employer) to the Employees' Provident Fund Organization (EPFO) that implements the Employees Provident Fund Scheme (the 'EPF Scheme'), irrespective of the contributions they may be making to such schemes in other countries.
The Employees Provident Fund and Miscellaneous Provisions Act 1952 provides for the institution of:
- Provident Funds,
- Pension Funds, and
- Deposit-Linked Insurance Fund.
Establishments employing 20 or more persons and engaged in any of the 180 industries or classes of businesses (encompassing most activities) specified are covered under the scope of the Employees Provident Fund and Miscellaneous Provisions Act 1952 (the EPF Act).
Also, contributions are mandatory for employees who earn up to Rs 6,500. The EPF Act can extend to other establishments that are not mentioned in the EPF Act by way of notification in the Official Gazette issued by the government.
It is important to note that once an establishment has been under the purview of the EPF Act, it continues to be covered under the EPF Act, even if the number of employees is fewer than 20 at a later date.
Participation in the EPF Scheme is compulsory for employees in almost all establishments in India that meet the basic qualifying criterion of employing 20 or more persons. Since the EPF Act applies automatically to qualifying establishments, employers are required to file the particulars in the specified format for registration and allotment of a business number.
The EPF Act and the relevant rules provide that the Employer's contribution to the EPF will be at the rate of 12 percent of the wages, including the basic wages, dearness allowance, and retaining allowance (if any), on its part and an equivalent amount on behalf of the employee, which is to be recovered from the employee's salary.
The EPF Act also provides for exemption from the operation of the EPF Act in certain instances determined on a case-by-case basis.
Apart from granting exemption to an establishment from the operation of a particular scheme, the Act also provides for the grant of exemption to an individual employee and also to a class of employees. Thus, an exemption from the operation of the scheme is granted.
If an organization finds that the Employees Provident Fund and Miscellaneous Provisions Act 1952 is applicable to it, then it should fill in the prescribed form for registration. The form, along with one or more of the supporting documents, should be submitted to the respective provident fund offices for registration.
The statutory contributions are deducted from the salary of the employees, and equal contributions are being made by the employers. This has increased the cost of human resources for employers.
Until now, foreign nationals working in India and Indian nationals working outside the country were not required to contribute to any social security or pension scheme in India. The recent change is expected to encourage more countries to establish social security totalization agreements with India.
India has such agreements with Belgium, France, and Germany and is negotiating similar agreements with Oman, the Netherlands, and Bahrain.
India and the United States have been discussing a totalization agreement since 2006 but have not yet reached a consensus.
Expatriate employees are expected to be allowed to withdraw accumulated contributions when they meet the normal eligibility requirements at the end of 10 years of service.
They could also make withdrawals in keeping with a social security totalization agreement if they belong to one of the countries that has such an agreement with India or if the employee's home country has a reciprocal arrangement which permits withdrawals by Indian employees in their country.
Regards
Davis John
HR Generalist
BreadTalk - India
+919966003210
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear sir,
I know that I am sounding silly, but I just wanted to confirm it. How about the employee who gets a regular income on our payroll in India and yet gets a fixed amount in the foreign country paid by the client? I mean, how will it be taxable, etc.?
From India, Hyderabad
Acknowledge(0)Amend(0)
I know that I am sounding silly, but I just wanted to confirm it. How about the employee who gets a regular income on our payroll in India and yet gets a fixed amount in the foreign country paid by the client? I mean, how will it be taxable, etc.?
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Friends,
Most importantly, correct. Some of the foreign nations, for their projects in India, with registration, some limited liabilities are also eligible for employees on both sides. If the foreign companies are not paying, the principal employer is responsible for the deduction of PF.
Regards,
From India, Kakinada
Acknowledge(0)Amend(0)
Most importantly, correct. Some of the foreign nations, for their projects in India, with registration, some limited liabilities are also eligible for employees on both sides. If the foreign companies are not paying, the principal employer is responsible for the deduction of PF.
Regards,
From India, Kakinada
Acknowledge(0)Amend(0)
Dear Sir, we are sending our worker to keniya sugar mill for a period of one year it is mendatry to deduct provident fund. Regard Rajendra Singh
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Sir,
We have to send one of our employees to France. I inquired about the Social Security Scheme certificate. They told me that I will get the certificate on the EPFO website under the international workers column. I got the application, but there is no information regarding the documents to be attached.
Does anyone know about the documents to be submitted along with this?
Regards,
Bhavani.
From India, Hyderabad
Acknowledge(0)Amend(0)
We have to send one of our employees to France. I inquired about the Social Security Scheme certificate. They told me that I will get the certificate on the EPFO website under the international workers column. I got the application, but there is no information regarding the documents to be attached.
Does anyone know about the documents to be submitted along with this?
Regards,
Bhavani.
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Madhu,
If the transferred employee is paid a salary by an overseas branch, such as in the US, do we still have to deduct the Provident Fund even though his salary is neither processed nor paid in India? May you please clarify.
Expecting your prompt response.
Best regards,
Shankaran
From India, Bangalore
Acknowledge(0)Amend(0)
If the transferred employee is paid a salary by an overseas branch, such as in the US, do we still have to deduct the Provident Fund even though his salary is neither processed nor paid in India? May you please clarify.
Expecting your prompt response.
Best regards,
Shankaran
From India, Bangalore
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.