Dear All,
Is PF applicable for citizens of other countries employed in India? And if so, can you guide me through the provisions and deductions for those who are covered under SSA and who are not covered under SSA?
Thank you
From India, Chennai
Acknowledge(0)
Amend(0)
1Is PF applicable for citizens of other countries employed in India? And if so, can you guide me through the provisions and deductions for those who are covered under SSA and who are not covered under SSA?
Thank you
From India, Chennai
Acknowledge(0)Amend(0)
Yes, PF is applicable to international workers. You can find all the information regarding this on [EPFO (Govt. of India)](http://www.epfindia.com).
Vikram Trivedi
PF ESI Consultant
Mob: 8898841995
From India, Mumbai
Acknowledge(0)Amend(0)
Vikram Trivedi
PF ESI Consultant
Mob: 8898841995
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Thomas,
Yes, it is compulsory to contribute to PF contributions. But remember, PF contributions should be made from both sides. I mean, if a foreign employee is related to Japan, then you have to submit PF contributions based on both the Indian salary and the Japanese salary at 12%. An important point to note is that the salary should not be broken down into parts like BASIC, HRA, MEDICAL ALL., LTA, as it should only consist of Basic.
I only have knowledge about these points to assure you.
Thanks
From India, Faridabad
Acknowledge(0)Amend(0)
Yes, it is compulsory to contribute to PF contributions. But remember, PF contributions should be made from both sides. I mean, if a foreign employee is related to Japan, then you have to submit PF contributions based on both the Indian salary and the Japanese salary at 12%. An important point to note is that the salary should not be broken down into parts like BASIC, HRA, MEDICAL ALL., LTA, as it should only consist of Basic.
I only have knowledge about these points to assure you.
Thanks
From India, Faridabad
Acknowledge(0)Amend(0)
PF is not on basic but on full salary paid to the expat, including allowances paid.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Mr. Murali kandukuri, I had already wrote that no need for salary should be in parts like HRA, LTA, Conveyance All, etc.... So i had mean that make a single part that is BASIC. and deduct pf on same.
From India, Faridabad
Acknowledge(0)Amend(0)
From India, Faridabad
Acknowledge(0)Amend(0)
You must pay PF contributions for international workers drawing a salary in India and Indian currency. P.F. is calculated at 12% on the total salary, not just on basic + DA.
VSN Raju
PF & ESI Consultant: 9440635016
From India,
Acknowledge(0)Amend(0)
VSN Raju
PF & ESI Consultant: 9440635016
From India,
Acknowledge(0)Amend(0)
Dear Thomas,
PF has to be deducted for them also. 12% from them and Employer 12% has to be paid as it is. For example: His basic pay is 1,00,000. His 12% is 12,000/- then 3.67% & 8.33% has to be paid as 3670 & 8670 accordingly. We should not limit to Rs. 6500/-
Regards,
Saravanan J
From India, Hyderabad
Acknowledge(0)Amend(0)
PF has to be deducted for them also. 12% from them and Employer 12% has to be paid as it is. For example: His basic pay is 1,00,000. His 12% is 12,000/- then 3.67% & 8.33% has to be paid as 3670 & 8670 accordingly. We should not limit to Rs. 6500/-
Regards,
Saravanan J
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear All,
Why is the employer contribution in this regard only 12% or is it 13.61% itself? How can an expat claim the amount if he's in India for only a few years and has to leave the country before retirement age, provided the constraint of not having an Indian bank account?
Thank you,
Edwin Thomas
From India, Chennai
Acknowledge(0)Amend(0)
Why is the employer contribution in this regard only 12% or is it 13.61% itself? How can an expat claim the amount if he's in India for only a few years and has to leave the country before retirement age, provided the constraint of not having an Indian bank account?
Thank you,
Edwin Thomas
From India, Chennai
Acknowledge(0)Amend(0)
Dear Edwin,
Please note the following points for your reference in regards to foreign workers/expats:
a) PF deduction is 12% from the employee and 12% + 1.61% from the employer.
b) The percentage, i.e., 8.33% and 3.67%, will be on an actual basis - meaning not limited to Rs. 6500.
c) Employees will not be able to withdraw PF amount until the age of retirement/58 years of age.
d) Expats must have a single-headed salary structure.
Hope this meets your requirements.
Chill HR
From India, Gurgaon
Acknowledge(0)Amend(0)
Please note the following points for your reference in regards to foreign workers/expats:
a) PF deduction is 12% from the employee and 12% + 1.61% from the employer.
b) The percentage, i.e., 8.33% and 3.67%, will be on an actual basis - meaning not limited to Rs. 6500.
c) Employees will not be able to withdraw PF amount until the age of retirement/58 years of age.
d) Expats must have a single-headed salary structure.
Hope this meets your requirements.
Chill HR
From India, Gurgaon
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf