Consolidated Guidelines regarding securing Compliance in respect of EPF members proceeding to work in a foreign country
The EPFO, vide EPF Circular dt. 20th Jan. 2016, has clarified reg. the compliance status of Indian employees working in a covered establishment and moving to work in a foreign country (SSA or non SSA), due to varied practices for continuance of compliance in respect of such employees. Thus, EPFO has reviewed the same and has presented a consolidated set of guidelines to handle possible scenarios.
The fundamental principle of deduction and depositing of PF and other dues is based on the assumption that wages are either paid or are payable by the establishment. Thus contributions are deducted and deposited with Employees’ Provident Fund Organization if wages are paid or payable by the Indian establishment. However if wages are neither paid nor payable out of the books of the Indian establishment, then PF and other contributions are not to be deducted.
The EPFO has prescribed certain guidelines for employers in SSA countries and for non SSA countries, as referred below: