Hello All, I am wondering if you could help me with a clarification regarding EPF contributions for an IW. Any government links are deeply appreciated.
Mandatory contributions for IW and employer
1. What are the mandatory contributions that an IW should make? And the same for an employer?
Contribution percentage
2. Online forums indicate it as 12% - what is the actual value?
Calculation of contributions
3. Is this 12% of the overall pay (including all allowances) or only basic and DA? For example, if CTC is 10,000 (with Basic - 5,000, DA - 1,000, other allowances - 4,000), what should be PF contributions by both IW employee and employer?
Employer contribution and salary
4. Is the employer contribution a part of the employee's salary? If yes, that effectively means 24% from the employee's pocket is locked into PF.
Withdrawal of PF amount
5. When can this amount be withdrawn? Any government links are deeply appreciated.
Looking forward to hearing a response. Thanks in advance!
Regards
From India, Bengaluru
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Mandatory contributions for IW and employer
1. What are the mandatory contributions that an IW should make? And the same for an employer?
Contribution percentage
2. Online forums indicate it as 12% - what is the actual value?
Calculation of contributions
3. Is this 12% of the overall pay (including all allowances) or only basic and DA? For example, if CTC is 10,000 (with Basic - 5,000, DA - 1,000, other allowances - 4,000), what should be PF contributions by both IW employee and employer?
Employer contribution and salary
4. Is the employer contribution a part of the employee's salary? If yes, that effectively means 24% from the employee's pocket is locked into PF.
Withdrawal of PF amount
5. When can this amount be withdrawn? Any government links are deeply appreciated.
Looking forward to hearing a response. Thanks in advance!
Regards
From India, Bengaluru
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PF for IW is complex to understand. The contributions for IW are at 12% of gross wages with matching contributions from the employer. How you internally treat this is a different issue.
The IW from countries with whom India has signed a social security agreement (SSA) will be able to withdraw the amount when they leave India; the rest will get it upon attaining the age of 58.
From India, Mumbai
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274The IW from countries with whom India has signed a social security agreement (SSA) will be able to withdraw the amount when they leave India; the rest will get it upon attaining the age of 58.
From India, Mumbai
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EPF - International Workers.pdf