Working for an Indian Company in Nepal: What Are Your ESI and EPF Responsibilities?

If Nepal residents are working in Nepal with an Indian company, what will be those employees' liabilities to ESI and EPF, and where must it be deposited?

Nepal's Legal Framework for Employment

Nepal is now an independent democratic country. Nepal's laws will apply.

Regards,
S. Krishnamoorthy

As far as ESI is concerned, they are covered by the ESI Act, and contributions should be paid at the place of their work, i.e., in India. For EPF, the same rule applies, but I doubt if they fall under international workers. If they do, their contributions will not be limited to 12% of Rs. 6500, but the entire PF qualifying amount (Basic + DA mainly) paid in India will attract PF. However, I am not sure whether persons of Nepalese origin who have migrated to India for permanent settlement are considered foreigners whose details need to be provided to the nearest police station, etc. If they are free to work in India, they will have the same status as any other PF member.

Regards,
Madhu.T.K

ESI and EPF Liabilities for Indian Companies Expanding in Nepal

An Indian company is expanding its business in Nepal and wishes to recruit Nepali residents for its marketing division in Nepal. What will be the ESI and EPF liabilities for the Indian company regarding these employees? If the company deducts ESI and EPF from these employees, can they avail ESI benefits in Nepal, and what would be the fair practice of PF for these employees?

Regards,
Bhupinder Kumar

In that case, the company is bound to honor the social security schemes of Nepal and not our ESI and EPF. If the operational headquarters of the company remains in India, then the EPF will become applicable to the Indian employees employed in Nepal.

Regards,
Madhu.T.K

International Workers and PF Deduction Criteria

Will these employees be considered international workers, and which criteria of PF deduction will be applicable for such employees? PF deduction will be either on the actual basic salary as for international employees or as per norms applicable to Indian employees.

Keep your valuable guidance.

Regards,
Bhupinder Kumar

If an employee is posted in Nepal, the law of that country will be applicable. There are social security legislations available in Nepal, and you must refer to them.

Regards,
Sivasankaran

Hello all,

I have some employees from Nepal for guard purposes. So, I want to know if these employees are liable for EPF and ESI.