Hiring from Nepal and Bangladesh: Do They Need PF Deductions on Indian Payroll?

Dear Seniors, We are planning to hire residents from Nepal and Bangladesh. They will be working solely in their respective countries but will be on Indian payrolls. Could you please confirm if they fall under the PF liability?

PF Liability for International Workers

If yes, then should the deduction be based on their Basic salary or Gross salary (for International Workers)?

Regards, Ishu Verma [Phone Number Removed For Privacy Reasons]

Urgent.......

In my view, they cannot be construed as international workers since they are neither Indian employees working abroad nor foreigners working in India. They are working in their respective countries. Hence, in my view, the question of applying PF laws of India to them does not arise. On the other hand, the Indian company probably will have to comply with the social security schemes, if any, of the respective countries. This can be ascertained.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
[Phone Number Removed For Privacy Reasons]

I hope this will help you.

Thanks & Regards

Thank you for your reply. I have discussed this matter with our PF Enforcement Officer, but he advised us to include them in the PF liability and treat them as International Workers. However, some Indian companies have hired these employees and deducted PF based on their Basic salary. Could you please help clarify what is the correct approach?

Regards,
Ishu