New Delhi: In a major development the Delhi High Court has issued a ruling where it has stated that the foreign employees working in Indian companies will now also be required to become members of the Employees’ Provident Fund Organisation (EPFO). It is important to note that regardless of how much they earn they will have to contribute to this fund. The court has upheld the amendments made to the Employees’ Provident Funds and Miscellaneous Provisions Act 1952. It has also approved the government notifications from 2008 and 2010 which made it mandatory for foreign employees to contribute to the Employees’ Provident Fund (EPF). Here are some of the key details: As per the new rule foreign employees will be able to withdraw their full EPF amount only after they retire at the age of 58. Employees who suffer from an illness or injury that makes them permanently unfit for work will also get the amount. This decision is seen as a setback for foreign workers who usually come to India for only two to five years. Indian employees are required to contribute only if their monthly income is below Rs 15000. Legal experts say that many foreign employees have already left India which means companies will now have to make contributions on their behalf as well. Why did the court give this verdict? Distinguishing between foreign and Indian employees is completely justified the bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela said. The court agreed with the government’s view that foreign employees form a separate group. This is because they contribute only for a limited period during their stay in India whereas Indian employees contribute throughout their entire careers.
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