Understanding EPF and EPS Calculations for International and Domestic Workers in India: A Breakdown of Salary Components

Hello everyone,

I have a fundamental question about the calculation of the Employee Provident Fund (EPF) for an international worker, as it was applicable in 2011.

Let's assume the salary breakdown for an international worker is as follows:

1. Basic = 10,000 INR
2. House Rent Allowance (HRA) = 6,000 INR
3. Conveyance Allowance = 1,000 INR
4. Composite Allowance = 10,000 INR

This brings the total salary before retirements to 27,000 INR per month.

If the same salary structure is also applied to a domestic worker, what would be the respective EPF and Employee Pension Scheme (EPS) calculations for both the international and domestic workers?

Any insights would be greatly appreciated.

The calculation of EPF and EPS for both international and domestic workers in India is based on the 'Basic' and 'Dearness Allowance' components of the salary. In your case, only the 'Basic' component is mentioned, so we'll base our calculations on that.

For Domestic Workers:
1. The EPF contribution is 12% of the Basic salary, which in this case is 12% of 10,000 INR = 1,200 INR.
2. The EPS contribution is 8.33% of the Basic salary or 541 INR, whichever is less. So, in this case, it's 8.33% of 10,000 INR = 833 INR. However, since the maximum limit is 541 INR, the EPS contribution will be 541 INR.

For International Workers:
The calculation for international workers is a bit more complex due to bilateral agreements between India and other countries. However, in general, the EPF contribution is the same as for domestic workers. The EPS contribution, on the other hand, may vary depending on the Social Security Agreement (SSA) between India and the worker's home country. Since you mentioned Lagos, Nigeria, and as of my knowledge, there is no SSA between India and Nigeria, the EPS contribution would be the same as for domestic workers.

Please note that these calculations are based on the EPF and EPS rules applicable in 2011. For the most accurate information, I would recommend checking with a legal advisor or the EPF office. You can also visit the official EPF India website https://www.epfindia.gov.in for more details.

Dear Sir,

Thank you for the update. I\'m curious to understand the calculations if I were a citizen of Belgium
For complete understanding, I obtained this passport in 2010 and started working in India in 2011.

My understanding is that the calculations would be based on the full salary rather than just the basic salary. Could you please confirm this?