Are Foreign Directors in India Required to Pay PF & FPF Contributions Across Multiple Companies?

The new amendment to the PF & FPF Act mandates payment of PF & FPF contributions for foreign nationals working in India. My question is whether PF & FPF have to be paid for foreign nationals who are directors of the company and draw remuneration in India. If the same foreign national is a director in more than one Indian company and draws remuneration from all the companies, should all the companies in which he is a director deduct & pay PF & FPF for that person.

Yes, all companies that pay remuneration should contribute towards EPF and EPS.

Regards,

Madhu.T.K

Yes, any foreigner working in India could be a member of PF/EPF as per law. The law has been amended in the last year, but subject to a treaty with the country.

Regards,
Arun

If a person is working as an Indian director in more than one organization, what about his contribution in PF & FPF? Is it true that his contribution for FPF is deducted from any one organization only?

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FAQs on International Worker EPF

Please see the attachment of FAQs on International Worker EPF. This may be useful for your requirements to some extent.

Regards,
PBS Kumar

I have a small query related to the PF withdrawal of an international worker. The individual is a Japanese citizen who turned 45 and held the position of director in an Indian company. They resigned from the organization on October 21, 2014. The PF office has informed us that the withdrawal of the PF for this individual will only be possible after they reach the retirement age of 58, as India and Japan do not have a social security agreement.

I would appreciate your guidance on this matter. Looking forward to your valuable reply.

Regards,
Santosh

Dear all,

If there are two directors for the company, one is Indian, and the other one is a foreigner (can we call him as IW, i.e., International Worker for EPF matter?), then my question is whether we have to compulsorily deduct EPF contribution for the foreigner director (as Indian directors are not required to be considered for EPF contribution).

If yes, then what should be the PF contribution wage ceiling limit? And what about the foreigner's PAN and address? Is there any other thing related to this topic?

Thanks in advance.

It is okay for an Indian Director because an Indian getting a salary of more than Rs 15,000 from the beginning can be excluded from PF contribution. However, for a foreign national, this salary ceiling is not applicable. There is a technical problem associated with his enrollment. You cannot generate UAN without Aadhaar. Though a foreign national who is in India for at least 182 days can get Aadhaar, the EPF rules state that one should be enrolled from day one. Therefore, you need to clarify and address this technical issue before proceeding.