The Karnataka High Court, in its judgment of Stone Hill Education Foundation v. The Union of India and Ors., 2024 LLR 654 struck down para 83 of the Employees’ Provident Fund Scheme, 1952 (“EPF Scheme”) and para 43A of the Employees’ Pension Scheme, 1995 (“Pension Scheme”) which covered international workers irrespective of the salary drawn by them. The said provisions were extended to international workers from 01.10.2008.
An international worker is an Indian employee who works in a foreign country with which India has entered into a bilateral Social Security Agreement (“SSA”) or an employee working in India not holding an Indian passport. Under the said special provisions, an international worker was required to be covered on his entire salary (even for pensionary benefits) and the amount payable lying to his credit would be payable to him when he leaves India only on attaining the age of 58 years. The ceiling for employees (other than international workers) for becoming a member of the Scheme is Rs.15,000/-.
In the...