Can we add the NRI employee for EPF as of regular employee?

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1

Thanks for the information.
Can you please guide me on the following queries:-

  1. Can we add the NRI employee for EPF as of regular employee or there is a diff procedure?
  2. IF we hire them as freelancers, is it ok to deduct the TDS u/s 194J or there is a separate provision?

Thanks in advance.

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Hi Naresh,

With regard to your query on EPF for NRI - 1. Can we add the NRI employee for EPF as of regular employee or there is a diff procedure?

In the absence of a Social Security Administration with the foreign country, the Indian employee is required to contribute towards PF in India as well as that of the foreign country.

The Indian Government in order to benefit both the employers and employees has entered into Agreement with several countries to ensure that the employees of home country do not remit contribution in that country, and to get the benefit of totalization period for deciding the eligibility for pension, may get the pension in the country where they choose to live. Also the employers are saved from making double social security contributions for the same set of employees.

In this regard, the EPFO has been authorized to issue the Certificate of Coverage to the employees posted to the countries having signed Agreement with the Government of India.

https://www.epfindia.gov.in/site_en/International_workers.php
https://epfoportals.epfindia.gov.in/iwu/

2. If we hire them as freelancers, is it ok to deduct the TDS u/s 194J or there is a separate provision?
You may hire a NRI as freelancer to provide services to you in India and deduct the applicable tax. The NRI is accountable for the income earned in India .

Regards,
Bhuvana Anand

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