Start with Search - Type your requirement here

Wednesday, December 17, 2008

[EPF-international workers]43A-Provident Fund applicability mandatory on EXPATRIATES

Para 83 has been inserted in EPF Scheme w.e.f. 1-10-2008 to make provisions for provident fund to international worker.

International worker is (a) an Indian employee who has worked or is going to work in a foreign country with which India has entered into a social security agreement and when the employee is eligible to avail social security programme of that country (b) an employee other than Indian employee, working for an establishment in India to which the EPF Act applies. International worker working in India shall be required to become member of Employees Provident Fund. However, such contribution is not required if he is ¡excluded employee. Excluded employee¢ means an international worker who is contributing to social security programme of his/her country of origin, with whom India has entered into a social security agreement on reciprocity basis, and the employee is enjoying status of ¡detached¢ worker as per agreement with other country. The Indian employer is required to submit details of ¡international worker¢ employed by him and also submit periodic returns. Para 43A of EPF Scheme (inserted w.e.f. 1-10-2008) makes provision for pension to international workers, as defined in para 83 of the EPF scheme. The scheme applies to member covered by international social security agreement. The scheme makes provisions for calculating pensionable service and pensionable salary of such employees.

The salient features of the Amendment by Mr. Gokul, Trivandrum

1) The employees qualifying as 'international workers' will contribute to the EPF schemes and the employers would also be required to make an equal contribution.

2) The employees likely to be affected or benefited would include expatriates (foreign citizens) working in India and even Indian employees deputed to work abroad. With the employer picking up their share of the contributions also, the expatriate assignment costs are going to increase even further.
3) The notification exempts international workers from those countries with which India has signed Social Security Agreements, commonly known as Totalisation Agreements, and who have been contributing to their home country social security schemes. India has currently finalised totalisation agreements with Belgium, France and Germany . The entire objective of such agreements is to ensure a level playing-field for mobile assignees. These agreements aim to protect the interests of Indian professionals by securing exemption from social security contributions in case of certain short-term assignments in the host country.
4) In essence, there is no impact of the amendment on the employees of the establishment who are working in the foreign countries with whom India has not signed SSA. Such employees will continue to contribute to the Social Security Schemes of the country in which they are posted but may not get any benefit out of such contribution.
5) The Indian employees on short term international assignments (period specified in each agreement), who are contributing to Indian PF scheme, would not be required to contribute to the social security schemes in the respective host countries.

Provisions Employer needs to comply with,

1) To send to the Provident Fund Commissioner, within 15 days of the commencement of the scheme (1.11.2008), a consolidated return in such form as the Commissioner may specify of the International worker indicating clearly nationality of each and every international worker required or entitled to become member of the fund showing the basic wage, retaining allowance, if any and Dearness Allowance irrespective of wage/salary ceiling including the cash value of any food concession paid to each of such international workers. However, if there is no international worker who is required or entitled to become a member of the fund, the employer shall send "Nil' Returns.
2) To send to the Commissioner, within 15 days of close of each month, a return of the International workers qualifying to become members of the fund for the first time during the preceding month.


Anonymous said...

There's certainly a great deal to know about this subject. I really like all the points you have made.

Review my web site - chestfatburner.Com

Anonymous said...

Pretty great post. I just stumbled upon your weblog and wanted to mention that I have really loved browsing your blog posts.
In any case I will be subscribing for your feed and I
hope you write again very soon!

Here is my webpage: what is gynecomastialiposuction procedures?

Anonymous said...

This text is worth everyone's attention. Where can I find out more?

Look at my web-site ... Strengthen your reduce torso with workout routines as well as diet plan

Anonymous said...

Hi there! I could have sworn I've been to this website before but after browsing through some of the post I realized it's new
to me. Nonetheless, I'm definitely happy I found it and I'll be
book-marking and checking back often!

Here is my page; The particular after effects of gynecomastia

Anonymous said...

I was recommended this website by my cousin.
I am not sure whether this post is written by
him as no one else know such detailed about my problem.
You are wonderful! Thanks!

Look at my webpage Gynecomastia in Puberty and also Later years

Anonymous said...

Hi, i think that i saw you visited my web site thus i
came to “return the favor”.I'm trying to find things to improve my site!I suppose its ok to use a few of your ideas!!

Feel free to visit my web page; Chromium picolinate and it is part for gynecomastia

Anonymous said...

Hello, the whole thing is going sound here and ofcourse
every one is sharing data, that's truly good, keep up writing.

My webpage Developing any V Condition body ?

Anonymous said...

Someone essentially help to make significantly posts I
might state. That is the first time I frequented your website page and thus far?

I amazed with the research you made to create this particular publish amazing.
Fantastic job!

my page - Infrequent Medicines and Bud causes the larger Tits

Post a Comment

CS Updatin...

See Yes -> Yes, ACS

↑ Grab this Headline Animator