Understanding EPF Contributions for Foreign Employees: What Are the Rules and Requirements?

Dear all,

We would like to know about the following points regarding Foreign Employee contributions under the EPF Act 1952:

1. Are any limits defined? For example, 6500 INR for India.
2. Is there a declaration form to be submitted? If yes, which form should be used?
3. Are there any challans and returns to be sent to the EPF office?
4. Is the contribution distribution calculated the same as in India or different? For example, 12% employee and 12% employer contributions.

Thank you.

In respect of international workers, the employer is bound to contribute to the total amount of salary (Basic + DA + retaining allowance as similar to Indian workers) without any limit of Rs 6500. The employer's contribution is to be distributed as 8.33% of Rs 6500 to the Employees' Pension Fund and the remaining (total minus Rs 541) to be paid into the Employees Provident Fund along with the employees' share of 12%.

There is no separate challan for deposit, but the amount shall be deposited along with other Indian employees using the same challans. A statement in form IW-1 is to be sent when an international worker takes up employment.

For more details, please visit the website of the Employees' Provident Fund Organisation or follow the link EPFO <link updated to site home>.

Regards,
Madhu.T.K