Pf Coverage - International Worker - Zip Download - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
Vijayvashisth
Hr/liasioning/admin

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dear all
I have doubts on recent amendment on PF Coverage for International worker.
1. whether international worker would be compulsorily liable to participate in PF Scheme irrelavant of his basic salary.
2.If, he is liable wheter pf has to be deducted on actual basic + da or will he have option to contribute on Rs. 6500/- only.
3. what are the pention relating provisions for international worker.
4. what will be the maturity benefits to international worker when he leaves india within short time say 2-3 years.
Best Regards
Raghu

For international employees working in India there is no cap on salary on which contribution by employee and employer are payable. However, the same cap of Rs 6500 as applicable to Indian employees for payment of contribution to Employees Pension Scheme and Employees Deposit Linked Insurance is applicable to international employees also.
Pay for this purpose also includes Basic salary, Dearness Allowance and retainer allowance, if any.
For pension the same provisions as are applicable to Indian will be applicable to international employees also.
The maturity benefits will be same as applicable to Indian employee. Therefore, if an international employee leaves employment in India, he can have withdrawal benefits as provided in the Act (Scheme 69 )
Regards,
Madhu.T.K

Thanks Madhu for Clarifying...
In that case, do you mean that if a basic salary, DA and Retainer allowance (all put together) of international worker is Rs. 1 Lakh, then the PF should be 12% of Rs. 1 lakh or it can be Rs. 780 which is 12% of Rs 6500 ???

There is no cap on salary for the purpose of EPF but a cap of Rs 6500 is there for Pension Scheme. If the salary is Rs 1 lakh the PF contribution should be Rs 12000 whereas the Pension Fund contribution by the employer should be restricted to Rs 541 (8.33% of Rs 6500). The equating amount of Rs 11459(12000-541) payable by the employer should be deposited in PF account (A/C No 1)
Regards,
Madhu.T.K

Dear Mr. Raghu, Pls go through the attached details, it will help you. From- Vijay Vashisth

Attached Files
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File Type: zip PF Amendments.zip (2.57 MB, 2384 views)

Hi Madhu,
I am not able to understand what is retaining allowance, what all is covered under this head?
Secondly the components of the salary in my company are: Basic, HRA, professional development allowance, soft furnishing allownace and entertainment allowance sum of which is the gross salary. Also we have medical and flexible reimbursement.
Can you please explain on what basis PF would be deducted on international employee's salary.

Retaining Allowance is a special allowance paid to an employee who is discharging a duty with some special skill. It will be an arrangement with employer that an amount should be paid in addition to the normal salary applicable to the particular grade of employees. In otherwords, it is an additional amount paid/ payable to retain skill of special nature.
Professional Development allowance may not be treated as retaining allowance since it is paid for improving the quality of man power and not for 'retaining' an employee who only can discharge a particular kind of work. In your pay structure only the basic salary will qualify for PF.
Regards,
Madhu.T.K

Dear Vijay, Could not download the attachment that you have posted. Kindly do the needful.
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