EPFO Evaluates Action for Recent Judgment on International Workers

One of the two main social security organization, The Employees’ Provident Fund Organisation (EPFO) acknowledges the recent judgment issued by the esteemed High Court of Karnataka.

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India presently has social security agreements with 21 countries. These agreements ensure continued social security coverage for employees from these nations on a mutually reciprocal basis.

When citizens from these countries take up employment in each other’s territories, their social security coverage remains uninterrupted.

These agreements aim to guarantee the uninterrupted social security coverage of employees during international employment.

These agreements are very important for India for promoting International mobility and leveraging the demographic dividend. The EPFO serves as the operational agency in India for such social security agreements.

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What is the Current Judgment?

The judgment pertains to the specific provisions for International Workers outlined in Paragraph 83 of the Employees’ Provident Fund Scheme, 1952, and Paragraph 43A of the Employees’ Pension Scheme, 1995, which were deemed to be inconsistent with Article 14 of the Constitution.

The EPFO is actively evaluating the course of action in response to this judgment.

Brief about the provisions on International Workers by EPFO

The said provisions were introduced by the Central Government vide notification dated 1 October 2008 requiring international workers to contribute to the Provident Fund. 

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The question before the Karnataka High Court in this matter was – “Whether the introduction of para 83 of the Provident Fund Scheme and para 43A of Pension Scheme is unconstitutional and hit by Article 14 of the Constitution of India.

“The Government of India is unable to substantiate any nexus with the object sought to be achieved, para 83 is clearly discriminatory in treating the international workers of Indian origin and foreign origin differently and thus violative of Article 14 of the Constitution of India,” in accordance to the bar and bench said the Court.

The order can be read by a click here.

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