International workers Provisions of EPF Struck Down by Karnataka HC

International workers Provisions of EPF Struck Down by Karnataka HC
This landmark judgment of the Karnataka High Court comes in as a huge respite for the employers who had been facing considerable financial qualms with regard to remitting contributions for international workers on gross salary. It will be interesting to say as to what mechanism the EPFO will bring in to facilitate the refund of PF accumulations for International workers.

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/-.

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Gaurav Kumar

is Advocate, Supreme Court of India & Editor “Labour Law Reporter”.

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Gaurav Kumar

is Advocate, Supreme Court of India & Editor “Labour Law Reporter”.

December 2024

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