EMPLOYEES’ PROVIDENT FUND ORGANISATION
(Ministry of Labour & Employment, Govt. of India)
Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi — 110 066
No.IWU/7(29)/2012/Review /16266 Dated- 31 08 2012Online GST Certification Course by TaxGuru & MSME- Click here to Join
Subject: Clarification in respect of International Workers (IWs) – refund /readjustment of excess amount in pension fund.
Consequent upon inclusion of special provisions in respect of International Workers (IWs) and signing of Social Security Agreements (SSAs) with a number of countries by the Government of India, the benefit of “detachment” is being availed by the posted Indian employees by obtaining a Certificate of Coverage (COC) on the basis of which they are exempted from making contributions in other country up to a certain period. The status in respect of such employees has been clarified vide Head Office letter No. IWU/7(17)2009 dated 25.05.2012, according to which the persons going on posting with COC will not be International Workers.
2. In this context, a reference has been received in Head Office wherein it has been mentioned that in accordance with GSR 148 dated 3.9.2010 (notified in Gazette dated 11.09.2010), the employer has remitted the pension contribution in respect of all international workers on their enhanced salary with effect from the date of their posting or notification whichever is later assuming that such workers are IWs. However, in view of clarification given in letter dated 25.05.2012 as the persons going on posting with COC are not to be treated as IWs, pension contribution in respect of such employees should be limited to the wage ceiling of Rs.6500/- subject to proviso of para 11(3) of EPS 95 i.e. voluntary higher contribution on the option of employer and employee.
3. The matter has been considered and it has been observed that as the Indian employees going on posting with COC do not fall under purview of the IW, contribution in respect of such employees would be governed by normal provisions. Further, pension contribution remitted to the pension fund account in respect of such employees, who have contributed on full salary due to misunderstanding, needs to be re-adjusted by limiting the contribution in pension fund to wage ceiling of Rs.6500/- and by diverting the excess amount to the provident fund account of the member.
4. In view of above, it has been decided that if a request for readjustment of excess amount from pension fund to provident fund is made by an employer for the reason stated above, same may be accepted.
This issues with the approval of CPFC.
Additional Central PF Commissioner (IWU)