Karnataka High Court has struck down para 83 of the Employees Provident Fund Act and Para 43-A of Employees’ Pension Scheme which are applicable to international workers as unconstitutional and violative of Article-14 of the Constitution of India according to a post of B.C. Prabhakar, President of Karnataka Employers Association.
The judgment was delivered on 25.4.24.
Some members of the Association have challenged the validity of these provisions in Karnataka HC.
Special Provisions in respect of International Workers which was inserted by the Central Government videG.S.R 706 dated 01.10.2008 by the International Workers under the provisions of the Employees’ Provident Fund and Misc. Provisions Act,1952.
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Initially, when this Special paragraph 83 was inserted, the statutory basic wages limit was Rs.6500 per month for International Workers like Indian Employee as defined under Section 2(f) of the Act,1952 but this salary rider of Rs, 6500.00 was removed by the G.S.R 148 dated 03.09.2010. Thereby, meaning that for international workers, there was no salary rider so the employer is required to deduct the EPF contribution on total basic wages i.e. without any salary rider.
Now this notification of International Worker was challenged before the Hon’ble Karnataka, and in landmark judgment delivered by the High Court, Bangalore by pronouncing that the paragraph 83 of the Employees’ Provident Fund Scheme,1952 as well as paragraph 43-A of the Employees’ Pension Scheme,1995 as unconstitutional, violative of the Article 14 and 21 of the Indian Constitution.
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