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ASCERTAINING SALARIES OF INTERNATIONAL WORKERS IS A MUST FOR PF COVERAGE

COVERAGE OF CHINESE WORKERS WITHOUT ASCERTAINING THEIR SALARIES – TO BE QUASHED

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By filing the appeal, the appellant has questioned the validity of the order dated 29.09.2009, passed by the EPF Authority under section 7A of the Act that the amount paid to the technicians working in India and drawing salary in China in Chinese currency would attract EPF contributions.

The EPF Appellate Tribunal observed that the EPF Authority has not ascertained the actual salary/wages of these workers which is an essential requirement before enrolling an international worker a member of the EPF Scheme. The employees drawing salary/wages exceeding Rs.6,500 per month are not liable to be covered under the EPF Scheme. Hence, order of the EPF Authority suffers from serious infirmities and liable to be quashed. The appeal is allowed.

M/s. Wardha Power Company Ltd. vs. APFC, Nagpur, 
ATA No.692(9)/2009 decided on 2.2.2012

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