How Do We Enroll Foreign Employees in EPF and Calculate Deductions Correctly?

Dear All,

I am hereby attaching the latest amendment in the PF state that the EPF Act is applicable to foreign employees since 10.10.2008. Could anybody please send me the procedure for enrolling them and specify how much we have to deduct from their salary (from 6500 at 12% - 780 or some other amount)?

Kindly do the needful.

Regards,
SHAN

Dear Shan,

Thank you for your information and the attachments.

Please clarify for me if possible, is this applicable to all the states in India? If so, from when does the applicability start?

Regards,
Sivas

Dear Shan,

As per the PF Act, employees earning more than ₹6500 as basic do not fall under the PF Act. Please clarify if my understanding is correct. We have 25 employees working in our organization, but PF is not a part of our salary.

I would be grateful if you could clarify this.

Regards,
Smita

Some points on Expat PF:

1. Rs 6500 limit is not applicable for international workers.
2. This is applicable from 1st Nov 08.
3. A consolidated return (IW-1) needs to be filed.
4. There are some restrictions for withdrawal (clarifications obtained from PF Commissioner B'lore).

Dear friend,

We have checked with the regional Provident Fund Commissioner and were informed that in the case of an international worker (a foreign national working in India) who has a social security number abroad and is contributing towards social security, or has his employer taking care of social security abroad, then the issue of PF applicability in India need not be carried out. Of course, his basic salary should be greater than INR 6500/- and he can be considered as an excluded employee.

Ganesh K

Dear HR Fraternity,

Kindly provide some information regarding my query on PF withdrawal. One of my colleagues has been in service for over 5 years and wishes to withdraw a portion of the amount accumulated in his PF account without leaving the company. Please inform me about the provisions of PF Law related to my query.

To my understanding, 4 years of service are required for this type of withdrawal. Kindly clarify this for me.

Regards,
Prasad.

Dear Mr. Ganesh,

International workers are to be excluded from the Provident Fund (PF); merely having a social security number is not sufficient. India and the respective country must have entered into a Social Security agreement. Presently, India has such agreements with only three countries. (Please refer to the definition of an excluded employee.)

Nataraj K

Hi All,

Can you please clarify if this amendment is applicable if the organization has fewer than 20 employees and currently employs expats?

Thanks & Regards,
Poonam

Could someone please clarify the procedure for the withdrawal of PF amount? I request you to send it at the earliest.

As I was dealing with Expatriate PF, one basic concept which is still unclear is the procedure for the withdrawal of the PF amount. It generally takes 2 months after the submission of Form 19. Do expatriates have to wait so long? In whose favor will the Government of India issue the check, considering that the Indian account will be closed as soon as the expatriate's resignation is accepted?

Waiting for the reply.

Dear Preya,

In such a situation, I should directly consult the PF Commissioner to clear up all doubts.

Regards,