Can We Pause PF Contributions for Employees Working Abroad and Resume Later?

Hi all,

I have a query: if we transfer our employee outside India for a specified period and process his salary from his new place of work, there would be no salary in India and no PF contribution. Is there any provision in the PF Act to put PF on hold, and when he comes back to India, his same PF account be resumed?

A prompt reply would be highly appreciated.

Thanks in advance.

Regards,
Govil Nanda

When salary does not accrue in India, there may not be any PF deduction and contribution. Although there is no reference in the EPF & Misc. Provisions Act, it will be considered as a 'non-contributory period'. The same account will continue once he resumes receiving salary from India.

Expect more advice on it.

Regards,
Madhu.T.K

If the employee's salary is not paid for the period in which he is working abroad, the entire period should be treated as a non-contribution period. If the employee returns, the same account may be continued.

You can resume his PF account when he returns, but for that, you have to show him on your payroll on leave without pay (LWP) until the period he is out, and you have to pay 0 contribution for that period as he is on LWP and not drawing any salary.

Regards,

Atul

Dear Govil,

I believe the said employee has been posted outside for some project. Still, he continues to be your employee (please correct me if I am wrong). In that case, as he is not earning any salary in India, there will be no contribution or deduction of PF from either side. This will be treated as a non-contributory period, as my friend Madhu has pointed out. He would have to apply for a separate PF account if he makes a complete withdrawal of his PF money.

Presuming that this is not the case, the same account will continue to be functional once he resumes office in India, and contributions will start from then.

I hope this clarifies your query.

Regards,
Debashis

His membership with PF remains uninterrupted, and if his membership completes 9 years and 10 months, even if no contributions are made, he will be eligible for pension benefits under the PF Act.