Government has sought details of foreign employees working in establishments registered with Employees Provident Fund Organisation (EPFO). The details, like nationality, passport number, pay package, emoluments etc, are required for proper implementation of social welfare scheme for international workers in the country as they are also required to make pension contribution with effect from November 1.
The government notified amended rules governing the Employees? Pension Scheme 1995 to bring foreign employees under the EPFO fold on October 1. The new legislation described international workers as those who work within India but hail from countries with which India has no totalisation agreement. Indians who are posted in countries with which India has a totalisation agreement were also covered under the new norms. The amendment makes it mandatory for 4.4 lakh EPFO-registered employers to deduct 12% of the employees? basic pay and also make a matching contribution.
The government issued the format for preparation of the report carrying the details on November 6 and the domestic companies are required to submit the details at the earliest. The companies have to submit the PF contribution from the November salaries of these employees by December 15. This has to be followed by submission of the contribution on every 15 th of the subsequent month.
The scheme was expected to be implemented from October but was delayed as the government had not suggested the format for preparation of the report. ?Covered employers were required to provide a return to the Indian authorities by October 15 but the government had not suggested the format for the same. The form has been issued a day ago,? Ernst & Young Partner (Tax) Amitabh Singh said.
India has totalisation agreements with Belgium and France. For several years now, India has been pursuing bilateral pacts with most major economies to ensure that Indian workers can totalise their retirement fund contributions in that country when they return home. For instance, 80,000-odd detached workers from India working on consultancy and onsite assignments in the US contribute over $1.5 billion to the US Social Security Fund annually. These are mandatory pension contributions at the rate of 15% of their basic salary.
According to the International Organisation for Migration, India has the largest diaspora of migrant workers in the world at 20 million?second only to China ?s 35 million. A UN global migration trends in 2005 ranks India as the eighth largest host for international migrants, with 5.7 million foreigners in the country.