Industrial Relations And Labour Laws
Hr-manager, Trainer, Writer
The statutory rate of employees provident fund contribution is 12%. The employer will also contribute 12%. One whose salary at the time of joining the establishment is not more than Rs 6500 is required to become a member of the scheme. Yet, if an employer is willing to contribute, any person whose salary is above Rs 6500 shall also become a member. For the purpose of PF, basic salary plus the dearness allowance will qualify for contribution. Once an employee is covered by PF he will continue to be covered irrespective of any hike in the salary above the qualifying amount of Rs 6500.
You can get details from the Employees Provident Fund Organisations's websites.
21st November 2008 From India, Kannur
Thanks for the quick reply.
I am referring to the Expat Provident Fund.
We received the ff information and would like to clarify:
"On 1 October 2008, the Indian Ministry of Labour and Employment announced a significant extension of the Employees’ Provident Fund (Third Amendment) Scheme 2008 and the Employees’ Pension (Third Amendment) Scheme 2008, which requires certain foreign individuals working in India, as well as certain Indian individuals working overseas, to contribute to India’s social security system. Employees will be required to contribute 12% of their base pay (8.33% to the Provident Fund and 3.67% to the Pension Scheme) and a similar amount (i.e. 12% of base pay) will apply to the employer."
Are you aware of any ceiling amount/limit for expatriate contributions? Thanks so much ^^,
21st November 2008 From Philippines, Makati
In my previous assignment, I worked with a US based construction company in Chennai and to my knowledge the salary of the US staff deputed to work here were paid there and credited in the US. So I didn't come across that applicability of law to them. It depends on the payroll area location.
22nd November 2008 From India, Madras