EPFO exempts EPF and EPS contributions from salaries of Singapore citizens working as temporary workers in establishments covered under the EPF Act
The Employees Fund organization (“EPFO”) vide a notification dated 14th March 2017 has informed that EPF and EPS contributions should not be deducted from the salaries of Singapore citizens working purely as temporary workers in establishments covered coverable under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (“Act”).
The EPFO has clarified that as per the Para 2(f)(ii) of the EPF Scheme, 1952, an excluded employee is an international worker who is contributing to a social security programme in his country of origin with whom India has entered into a bilateral comprehensive economic agreement prior to 1st October, 2008. In suchbilateral agreement, the natural persons of either country are specifically exempted from contribution to the social security of the host country.
The EPFO further noted that the Comprehensive Economic Cooperation Agreement between the Republic of India and the Republic of Singapore (CECA-2005) was signed on 29.06.2005 and is effective from 1st August, 2005.
However, it is noticed that field offices of EPFO are not taking due cognizance of the provisions of EPF Scheme, 1952 as well as the bilateral agreement between India and Singapore.
Therefore, it is reiterated that Singapore citizens working in India purely as temporary workers and who do not hold the status of permanent residents in India are to be treated as Excluded employees. Therefore, EPF and EPS contributions will not be deducted from their salaries.