Nepali Employees and PF Deductions in India: Can They Withdraw to Nepal Bank Accounts?

Dear Seniors, there are some Nepali employees in our company, and the company deducts PF, but they don't have any bank account in India. Is it possible that after leaving the company, the PF withdrawal amount can be sent to their bank account in Nepal? Please help me.

Thanks

The every single person who is working with your company is your employee, and it would not be good and ethical to call them (NEPALI) by their caste, creed, and religion.

Withdrawal of EP Fund to Nepali Bank Accounts

Now, in answer to your questions regarding the withdrawal of the EP Fund with their bank accounts in Nepal, no, it is not possible because every employee in India must have a domestic bank account for this purpose. Bank accounts in their own country (Nepal) are treated as international bank accounts, which cannot be used for domestic transactions.

For your information, for every single international money transaction in India, we have to adhere to the procedure and guidelines set by the Indian Government under the “Foreign Exchange Management Act (FEMA).”

Opening a Corporate Bank Account for Employees

Well, you can help your employees by opening an employee bank (corporate) account. Being an employer, you can provide this facility to all your employees. For this, you just need to speak with any bank in India and can avail this facility for them with zero balance savings accounts.

Hope you have all the required personal (communication & postal address, ID proof, and other) and professional details you need, which will help you in this work.

Query Regarding Applicability of EPF & MP Act 1952 to Nepali Workers

Dear Shri. Anil Arora, Board Moderator, and Members,

The question that arises from reading this thread is whether the provisions for International Workers under the EPF & MP Act 1952 apply to Nepalis or not. This question has crossed my mind previously, and at that time, I posed it to a Senior EPFO officer at HQ, New Delhi. The response I received indicated an ambiguity surrounding this matter.

I would like to open a discussion in this forum on whether Nepalis are considered International Workers.

Definition of an International Worker (IW)

An IW may be an Indian worker or a foreign national. An IW is:

- Any Indian employee who has worked or is going to work in a foreign country with which India has a social security agreement, making them eligible for benefits under that country's social security program as per the agreement.
- An employee, not of Indian nationality, working for an establishment in India covered by the EPF & MP Act, 1952, and holding a passport other than an Indian one.

To the best of my understanding, Nepalis residing in India do not possess a passport from Nepal nor do they hold a visa. Given these circumstances, can Nepalis be classified as International Workers?

I look forward to your insights on this matter.

Thank you.

Sincerely

There are some provisions for international workers. I think there is a special provision for Nepalis. The reason is that there are some Nepalis working in the Indian Government service, like the Army as well. So it is better if you contact your local EPF officer for correct advice.

Regards

Nepali Workers and EPF Contributions

I believe Nepali workers will not be treated as International Workers since they don't require a visa for entering our state. Therefore, they will be treated as normal workers, and EPF will be contributed based on their basic salary, DA, and food concession.

Ask them to open an Indian bank account, which can be used for the withdrawal of the EPF amount when leaving India. The EPFO issued a circular in 2011 regarding International Workers; you may check that for more details and consult your nearest EPFO office.

Regards

Dear Members,

Is a Tibetan refugee in India considered an international worker from the PF point of view? The employee holds an identity certificate in place of a passport, which states Tibetan birth as the place of nationality. In the passport of Indian and other country nationals, nationality (Indian/British, etc.) is very clearly mentioned. Is the PF Act silent on this issue?

The EPFO has now exempted Nepalese and Bhutanese from IW status. They will be treated as Indian.

Regards,
Puran Dangwal

The employee who is a non-Indian, or Indians having employment overseas but covered under Indian PF rules, have to obtain COC. At the time of COC, the EPF has its own norms for international workers.

If the employer has concealed the fact and declared them as of Indian origin, then it would be up to the employer to rectify their errors.