Seeking Clarity on Expat Provident Fund Contribution Limits and EPFO Contacts: Can You Help?

Hi! Good day to everyone!

I am in Payroll and I need to clarify some issues regarding Expat Provident Fund. Can anyone enlighten me regarding any ceiling for Expat PF contribution? This is fairly new to me, and I am not aware if there is any ceiling contribution; all I know is the 12% of basic wages applies. Also, I would appreciate it if anyone can provide me with contact numbers of EPFO so I may contact them for future reference.

I have been reading through the posts here in CiteHR, and I find most posts helpful. Please, please help me with this inquiry. Many thanks!! ^__^

Is it Employees Provident Fund Contribution or Expat Provident Fund?

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, the 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 Organisation's websites.

Regards, Madhu.T.K

Hi Madhu. T.K!
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 ^^,

I too have heard this announcement. I think our ceiling of 6500/- (of Basic+DA) is applicable to them as well. It has become mandatory that foreigners working in India also need to be covered under the Social Security laws. When they stay here for more than 182 days, their income is taxable here. I presume that this holds good for a foreigner who settles here and takes up full-time employment on his own, not deputed by their parent company or otherwise.

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 was paid there and credited in the US. So I didn't come across the applicability of the law to them. It depends on the payroll area location.

Regards,
Chandru

According to my understanding, the new scheme is silent on ceiling for expats; it is 12% on the basic pay + DA (6500 limit not applicable). If anyone has any other views, please post.

Regards,
Nataraj

Hi,

Attached is the amendment for EX-PAT PF.

Regards,
Harshad

Dear Desai,

The note on the amendment is very useful. Could you please confirm if the format of the consolidated return has been notified? If available, kindly share.

Regards,
KN

Salary Inclusion for Provident Fund Calculation

What about salary? Will their salary from outside India be included for calculation purposes (12%)?

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